The dwarves live in the mountains to the north-west. They are in a constant strugle with monsters, [School of Myrmidiae] and [Sky Guild].
The Myrmidiae see the Dwarves as a rival to their martial abilites, as they are capable of creating weapons and siege equipment that rival if not surpass that of the war wizards. The Dwarves have a unique knowledge when it comes to the forging of weapons and armor from the fabled metal Mithril. The Myrmidiae constantly seek to take the dwarven smithing secrets and to meld it with their own unique abilites to create weapons unlike the world has ever seen.
Dwarves are the only ones capable of forging Mithril into useable weapons and armor, although they have no magic as a race. The war wizards have found that this metal responds well to their magical abilities and is required in many high magic abilities. Many a Myrmidiae would go to war or risk their life just to have a Dwarven forged weapon to call their own.
The Dragon casters of the Sky guild find the dwarves to be skilled workers and craftsmen and value them for the price they fetch on open market. Dwarves are strangely bound by law, even when forced into servitude. If a dwarf swears to an oath he will obey it til his dying day. In fact the idea of a Dwarf breaking his oath is so rare and fanstastical that many wizards wonder if the dwarves are not indeed bound by magic to uphold the weight of their word; Although no hard evidence has been found to prove that they are magical bound creatures.
A dwarf is a stout creature standing only 3-3 1/2 feet tall and almost as broad. They are incredibly strong and enduring for their size and for that reason make good slaves. They have long floor sweeping beards which they take immense pride in, however, most slaves are shaven to break their will. Some houses who have dwarves in their service allow them to regrow their beards and decorate them with symbols of their house as a reward for loyal, unbending service. Dwarven slaves are often seen as traitors who choose life over honor and are forever shunned by the free Dwarves. For this reason many dwarves who find themselves as slaves have little will to attempt to escape or return to their previous lives, knowing it could only mean death.