Reset warrants differ from standard warrants in that the strike price of a warrant can be reset to a lower level if the underlying stock price falls in a specified period (or date). As a result, reset warrants provide a downside protection. Some special and important properties can be found for the reset warrants, and the valuation of reset warrants is more difficult than that of standard warrants. For most tree models, the problem is that distribution error and nonlinearity error are often come out in the valuation of barrier-related options. We apply the adaptive mesh model (AMM) introduced by Figlewski and Gao (1999) to deal with the two errors. By constructing fine meshes in the area of easily producing the two errors, the AMM will greatly increase the precision and the efficiency of valuation. In respect of pricing properties, there exist a reset strike price and a reset data, respectively, to maximize the price of a reset warrant. In respect of hedging properties, there exist a delta jump, two gamma cones, and a vega hump when the underlying stock price approaches to the reset strike price. These properties will increase the difficulty in hedging warrants for the issuers.