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Sharepoint Sites - Granular Permissions - Office 365

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I have Office 365 E3. I have created a Site and want to Share it. I have changed the permission for group members to “Contribute”. According to this article:

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the Contribute permission set includes “Delete Versions”. I wish to share my site and documents with people. I don’t mind these individuals making edits or even viewing previous versions. However, I do not want them to be able to edit or delete past versions of the documents in question.

I have inferred from this and other articles that the permission sets can be customized at a granular level. However, I have not actually been able to discover how. Any help would be appreciated. Thoughts?


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