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The world of Paladia is significantly different in its geography from the world of Lapis. When the main party explores the world (albeit in a memory world), none of the locations resemble those of Lapis in any way.
The world is sufficiently developed in magic and technology, possibly equaling or surpassing those found in Lapis. Since some inhabitants from this world were transported into Lapis, it is possible that a handful of Lapis' cultural development is a result of these individuals.
The world of Paladia used to be a peaceful world. However, Hess attempted to explore Visionary Magicks and use it to claim independence from the rest of Paladia. Aldore, who believed in science, rejected Hess' ideals, as Visionary Magick was thought to be dangerous. With the two parties in disagreement, a war split the world into two factions, those who followed Hess and those who followed Aldore. Hess' faction was initially considered to be the weakest of the two almost unanimously, however the faction quickly grew in power when Hess managed to acquire the aid of an untold number of Espers, and also managed to form its elite unit known as Hess' Eight Sages composed of mostly mysterious beings. Dark Fina joined this group. In opposition stood the Sworn Six (known then as the Sworn Eight) who were loyal to Aldore. The war took several casualties from both sides and many were not content with the status quo, but without the ability to find a peaceful solution.
Raegen and Sakura under the mantle of Veritas of the Dark and Bolt, respectively, resented the war, and tried their best to end it to avoid further loss of life. Fina, known as the Demon of Hess, was an infamous lieutenant of Hess and had a rivalry with Veritas of the Earth. Veritas of the Frost was considered killed in action (although the Art Works guide cites his status as unknown).
As the war continued and the body count augmented, Raegen decided to enact a bold plan to end the war. The Sworn Eight would seal the Eight Sages into crystals, thus eliminating the lion's share of Hess' fighting power with their lieutenants gone. This would give the Aldore faction significant advantage, however the Sworn Eight would then coerce the leaders of their faction into restoring negotiations threatening to side with Hess and in turn, change the tide of the war should they fail to comply to the demands.
The Sworn Eight succeeded in sealing the Eight Sages and were ready to force peaceful negotiations. Unfortunately for them, Aldore grew paranoid of his lieutenants and betrayed them by launching giant Crystals at their location. This caused the Sworn Eight, and the Eight Sages sealed with them, along some locations (such as the Magic Library), to be transported into the world of Lapis, leaving the status of the world of Paladia and the war unknown.
Realizing that Aldore had betrayed them, the Sworn Eight grew resentful of their former leader and decided to pursue revenge against Aldore. However Raegen and Sakura deserted the Sworn Eight in favor of living peaceful lives in Lapis discarding their armors. However a new Veritas of the Dark would take on the original's armor and under his leadership the group would reform as the Sworn Six of Paladia, making it their goal to destroy Lapis by destroying the Crystals, scheming for 700 years.
During these occurrences, Dark Fina managed to contact Raegen and become aware of his son Rain, at this point she too is believed to have deserted the war.
- Fina's Psyche
Palladia is the plural form of palladium. Palladium is Latin for "safeguard".