As with the other respondents, leave the grip alone! Celluloid cracks over the years and this is part of the ageing process. A replacement is an alteration. Same thing with the Portepee. leave it alone in its correct tie. Also, make certain the knot that you bought is original and not a postwar fake. Your dagger was made by Carl Eickhorn and I would only lightly oil the blade as a previous poster mentioned.
Of course it is your dagger and you can do what you want with it but I would listen to the advice that you ask for.
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"You can't please everyone, so you have got to please yourself." Ricky Nelson
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