Daggerfall Covenant The Daggerfall Covenant is one of the three alliances in Tamriel at the time of the Three Banners War . Its colors are blue and white . The starting location for this faction is the island of Stros M ' Kai in Hammerfell , where the Vestige wakes up after being rescued just off the coast where they are deposited after escaping from the Wailing Prison in Coldharbour . The Vestige can choose to go to Stros M ' kai to find the person that rescued them . Background . Originally , the Daggerfall Covenant was a treaty made by the kingdoms of High Rock after Durcorach the Black Drake ' s failed invasion in 2E 541 . The terms of the treaty were that if High Rock came under attack from any outside army , all kingdoms would protect the province and the other kingdoms within . The main reason the Daggerfall Covenant was established in 2E 563 was to end the poverty and suffering throughout the kingdoms of High Rock and Hammerfell caused by dwindling trade routes , which in turn was caused by the many wars happening throughout the land such as King Ranser ' s War . This could not be done as long as an enemy sat on the Ruby Throne . The Merchant King of Wayrest , Emeric , took action and united the previously warring races of Breton , Redguard and Orc . He earned the trust of the kings of High Rock , earned alliance of the Redguards by a diplomatic marriage with Maraya of Sentinel , and finally , made a war treaty with the Orcs . The Redguards , a disciplined and martial people , have grudgingly agreed to join the Orcs thanks to the cunning Bretons , whose political and economic savvy make victory for the Covenant seem possible . Despite internal struggles , the Covenant believes that only it can provide the strong leadership and plan for prosperity the Empire needs to survive . Much like the Ebonheart Pact , the Daggerfall Covenant united races that were commonly known as old enemies ; the Bretons , Orcs and Redguards . Due to the events in both Cyrodiil and High Rock itself , trade routes , the region ' s main sources of income , were disrupted . This caused much poverty and suffering , and ultimately forced the people of the Iliac Bay and the surrounding areas to unite under one banner . The Daggerfall Covenant stretched over the provinces of High Rock , Hammerfell , the city - state of Orsinium and the Colovian Highlands in Cyrodiil . Its capital is the city of Wayrest , built on two shores of the Bjoulsae River in High Rock . The faction is led by the High King Emeric . Leadership . As trade in High Rock and Hammerfell slowed to a halt , it was only appropriate to have a merchant - politician for a leader of this faction . High King Emeric took the throne as he united the races of High Rock , Hammerfell , and the newly recognized province of Orsinium . Emeric was known for his skill in politics and diplomacy . He , no doubt , was a wise leader , but his foes were given no mercy . His strategy is to infuse fear into his enemies , slaughtering armies and leaving few of the fighters alive , only for them to run and share their tale . When the Breton Lion Guard " " became Emeric ' s personal army , he adopted the lion as his crest and it subsequently became the symbol of the Daggerfall Covenant . Members . Bretons . The dominant race of the Daggerfall Covenant , they were once ruled by High Elven overlords after they were discovered to be descended from both Men and Mer before becoming the dominant race in the region of High Rock and edging the Elves out . A reminder of those days is the Mer blood that still runs through their veins . This makes Bretons gifted mages , surpassing the ability of any other race of Men . Described as talented and resourceful , and having a similar focus on honor in battle , the Covenant is often ruthless in the defeat of enemies that threaten their people ' s prosperity . Bretons are known as skilled craftsmen , shrewd merchants and inventive mages and the race are also famed for their Knights . They value prosperity over glory in battle and are led by High King Emeric from their capital of Wayrest . Their symbol represents the Lion , the crest of the Daggerfall Covenant . Redguard . Living deep within and around the Alik ' r Desert , Redguards are renowned warriors , both athletic and prodigiously talented . They value honor and dignity above all else ; their sacred purpose is to preserve their ancient traditions and prove their strength and prowess , surviving in the harsh environment . Mages are highly distrusted in their society . The capital of the Redguards is the great city of Sentinel , from where they are led by King Fahara ' jad . Their symbol represents the Redguards ' skill with blades and battle . Orcs . Orcs are fearless warriors , who follow a code of honor , forged in centuries of endless warfare . The quality of Orcish blacksmithery is known throughout Tamriel . During the Second Era , when their homeland , Orsinium , was finally given provincial status , they had to prove themselves to be more than mere savage beasts . And the Orcs did so by devoting themselves to the newly forged Covenant . They are led by King Kurog gro - Orsinium from their capital of Orsinium . Their symbol represents the Orcs being some of the best smiths and warriors in Tamriel . Quests and Storyline . Many things threaten to destabilize the Daggerfall Covenant , including an attempt on the King of Daggerfall ' s life , the sacking of Camlorn by werewolves and a necromancer uprising in the Glenumbra region , a series of attacks from Vaermina - worshipping sorcerers in Stormhaven , a civil war and growing vampire crisis in Rivenspire , a religious crisis and Necromancer threat in western Hammerfell and an invading force of both Imperials and Reachmen in Bangkorai .