The faerie are those daemons who did not succumb to the will of the Archaic Divinities and battle against the Deities. As a reward for their integrity, after the war the Deities gifted them with Annwn. This land would be warped and influenced by their will. Though it was meant to be a refuge for the loyal, it soon became a hidden land in which the disgraced daemons could fester. In the dark corners of that realm darker daemons dwell. Their fell power corrupted those pockets, creating evil beasts.
In Cwelythvir, the whims of the faerie can be quite mercurial. Those that are prone to trickery and maliciousness are called the Unseelie, while those who take a fondness to mortals are called the Seelie. Some wizards, warlocks, and other weird kinds may be granted strange powers by the faerie. These mirror in a luminous way the evil boons of the daemons. Though at first they may seem quite peculiar, in the end their strength is equivalent.