- September 25, 2014 Note: As of Publish 86 Factons has been removed from the game. It has been replaced by the Vice vs Virtue PVP system.
When Minax took over Lord British's realm, she started a rift, both among her followers, and among the followers of Lord British. Both sides split into two different groups, with different ideals, and war ensued among all 4 sides.
The rebellion began in Moonglow, where the council of Mages decided that Lord British was no longer fit to rule Britannia. He'd not only failed to protect his lands from the invading hordes, but many of his own people had abandoned him and fled to the side of darkness, taking post with one of the factions of evil.
British's loyal followers tried to crush the rumors quickly that Moonglow was planning on seceding from the throne's grasp, but this only furthered their cause, making those who died or were jailed martyrs for the cause of the mages. The Council of Mages now believes that what Britannia needs is a new leader: one who can not only lead Britannia against Minax, but who can also keep peace once it's restored. To this end, they have begun preparations to do something drastic.
Though they've never had to do this themselves, they are the keepers of the arcane knowledge, and they have prepared many notes and items which they will need in their quest. They oppose Minax, and Lord British, and as such, are not safe from danger in either company.
Meanwhile, Minax has something of a rebellion herself occurring. Strangely enough, from within her own rank and file, there are those who are calling for the Shadow Lords to be released from the Abyss to take their rightful place as the rulers of the dark land. While her minions are grateful to Minax for allowing them the opportunity to strike terror at Lord British, they feel she is only useful as a magical tool, and is not powerful enough to lead them against Lord British for an extended period of time. To this end they have begun preparations to do something drastic of their own; call for the Shadow Lords.
Her minions are now split amongst those who would follow her, and those who wish to see her dethroned. Infighting is the only thing thus far that is keeping Minax from working out a way to breach the virtue spell that protects Lord British and his followers.
The Faction System is a broad game system designed to promote organized player conflict within the society of Britannia. The fundamental goal of the conflict is to provide a foundation for player conflict based upon meaningful and contextual combat and conflict-related interactions. The system is designed to encourage the inclusion of a wide array of player types through the use of game mechanics that appeal to a broad set of play-styles. 
Factions is a group PvP system that exists only within the Felucca facet. The system consists of 4 Factions, 2 good and 2 evil, struggling for control of Britannia. Control is determined by eight Felucca cities (Britain, Magincia, Minoc, Moonglow, Skara Brae, Trinsic, Vesper and Yew). Cities are captured by stealing the town Sigil, taking it back to your base, holding it for 10 hours to corrupt, and then placing it back in the respective town. The town is secured for 3 days until the sigil can be stolen once again. All factions are aggressive towards each other, meaning each faction member can be attacked freely by members of another faction. This type of warfare only takes place in Felucca, enemy faction players appear neutral in all other facets.
To join a Faction, visit the stronghold of the one you wish to join and use the signup stone located near the entrance. You will be given a robe to show you allegiance and be able to join in the fight immediately.
A good matured faction that have issues following the teachings of Lord British. Their base is in the Parliament Building in Magincia.
They follows the evil mage Minax. They are based in a mountain stronghold.
Faction players are eligible for public office within their faction. The three eligible offices are: the office of Faction Commander, Town Sheriff, and Town Finance Minister.
The office of Faction Commander is attained through an election process that occurs once per week. There is only one commander per faction. The Faction Commander may send a global command to all faction members twice per hour by simply saying, "message faction". Most commands made by the Faction Commander are decided through Faction and Town Stones.
Appointed by the elected Faction Commander to control the placement of guards in a captured faction city. There is one sheriff per city. Town Sheriff may view the town/city treasury and may hire guards by simply saying, "I am Sheriff" out loud.
Appointed by the Faction Commander to manage taxes and resource vendors in a captured city. There is one finance minister per city. The Finance Minister may access the town/city treasury to change tax rates and may hire vendors by saying, "I wish to access the city treasury".
Starting with Publish 56, players can now use silver to purchase special items and equipment. These items are only usable by faction players. Worn equipment requires a certain level rank to use. Inside each stronghold near the faction stone is a Cooperative Collection chest. Donate silver to it and collect rewards. In the future, silver donated to the faction in this way will be beneficial to the faction.
- Faction Stronghold Rune - 150 silver - On use, the faction member will be teleported directly to their stronghold faction stone, destroying the rune in the process. All normal flagging rules apply. A cool down between uses applies based on rank.
- Shrine Gem - 100 silver - Upon death, the faction member will be offered to be teleported to a random shrine. If accepted, they are teleported and the gem is destroyed. The gem is blessed.
- Supernova Potions - 100 silver - On use, creates a ring of fire around the player that inflicts fire damage to enemy targets within a 5 tile radius. The closer the enemy, the higher the damage will be. Damage is increased based on player’s Alchemy skill and Enhance Potions item property. There is a 2 minute cool down between uses.
- Greater Stamina Potion - 50 silver per potion - On use, restores 100 stamina points over 5 seconds. The player cannot drink another such potion while one is already active.
- Enchanted Bandages - 100 silver for 10 - Bandages that lift curses like Enchanted Apples do. Curses are removed regardless of healing skill or success of applying bandage. Standard application time rules apply.
- Powder of Perseverance - 300 silver - On use, player can target a faction artifact reward to reset total durability on it. Each time the player uses a recharge on the item, the total durability will decrease (1st time 225/225, 2nd time 200/200, etc.). Faction artifacts can be recharged a maximum of 5 times.
- Morph Earrings - 1,000 silver - While wearing your Human character can wear Elf Only armor and clothing. If the player removes the earrings, equipped Elf Only items will drop to the player’s backpack. If his backpack is full, the equipment will be sent to his bank box.
- UO Publish Notes (December 6, 2000). "The Faction System - Faction Introduction". UO Developer. Retrieved on 2008-10-28.