Although the tensile strength of carbon nanotubes inherited from the sp2 hexagonal carbon lattice is as high as 120 GPa, the state-of-the-art mechanical resistance of carbon nanotube fibers is below 10 GPa. Material imperfections embedded in the complex microstructures are responsible for this remarkable reduction across multiple length scales. In this study, we rationalize this multi-scale degradation of mechanical performance through theoretical analysis of the processing-microstructure-performance relationship for carbon nanotube fibers based on the experiment data, offering a simplified model that not only quantifies the breakdown of material strength at the nanotube, bundle, and fiber levels, respectively, but also provides practical advices to optimize the manufacturing processes for elevated mechanical performance.