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Rather than actively plying their piracy, some of the pirate captains who troubled the Gulf of Dafar** after Malatesta** gave it up organized under a single flag forming a powerful protection racket to extort gold from merchant companies rather than having to kill for it. After a series of bloody maritime engagements that pitted pirates against Reavers**, the Confederation was born taking up their trade.

At present, a great deal of the Confederation's income is derived from squeezing all traffic in and out of Dafar** which now finds itself on the brink of collapse. The reason for this uncontrolled and unsustainable hemorrhaging of funds is still not entirely clear.

The Freebooter's chief stronghold and headquarters is the city of Razor's Edge**.