Today, the realm of the elves has been condensed to the size of a small continent. Humans are the (mostly) civil rulers of most of the known world. Most people have never seen an elf, but still, anything associated with elves (magic and half-elves, chiefly) are regarded with suspicion at best and hostility at worst. Magic items and clockwork devices are rare, but generally are regarded as items of curiosity more so than scorn.
Although elves are more rumor than reality, the realm of the elves (known as Forestwylde) is very real and extremely dangerous. The creatures both subjugated by and created by the elves thrive in the murky, dank woods. Occasionally, an ogre, dragon, or wight slips out to cause trouble among the civilization of men. The common militias and various town guards are no match for such monsters, and thus the need for mercenaries was established.
Mercenaries are highly-skilled (and slightly insane) warriors and the like who earn a living by putting down threats of this nature. Although the risk is tremendous, the rewards can be beyond belief. Many such mercenaries come back from these battles encumbered by gold, gems, and the occasional magic item. They are rewarded by being offered even greater challenges for even more rewards. Those who survive many of these encounters gain a certain celebrity (they are the rock stars of their world). Some have even risen to the ranks of local regents. The bravest of these mercenaries even go as far as to risk entering the Forestwylde itself.
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