Shorty before the Purge of the Squat race by the mighty Tyranids, a Council was formed of the most ancient and powerful Living Ancestors, eleven in all, gathered together and discussed an event they had all foreseen. The Purge of the Squats. Going to their Lords, they beseeched them to listen, and their pleas were duly noted and then forgotten about, for it was the Festival of the Golden Keg a time of celebration and ale, not dire warnings and prophecy. Faced with the destruction of their race and culture, the Ancestors gathered the most ancient and powerful artifacts of their race, along with their Brotherhoods, and any Squats that would listen. Gathering the heart of their race into eleven great ships, and setting out for Imperial Space.

Unfortunately for their race, the Fleet was intercepted by the Vanguard of the Tyranid Invasion, and five of the great ships were obliterated in an instant, killing thousands of Squats, and destroying millions of years of culture and history. As the surviving ships broke into Imperial held Space, the remaining Living Ancestors sent a plea to Segmentum Command, asking for aid in fighting off the Tyranid invasion, but were cruelly denied by the xenophobic Commander. Watching in horror as the Homeworlds were ravaged and destroyed, the small fleet landed on nearby Mars, a relatively safe and familiar place to many Squats due to their extensive relationship with the Mechanicus.

Using their connections within the Adeptus Mechanicus, the Squats worked for many years to gain an audience with the High-Lords of Terra, eventually trading several relatively minor STCs that the Squats had held for an age so they could finally have their say. Once before the High-Lords the Living Ancestors spoke of the betrayal of the Segmentum Command, the long and dedicated service of the Squats to the Imperium, and the great benefits the Squats had provided. Offering up one of their final bargaining chips, a STC for a mining machine that would mine ores almost as well as a Squat could, while still far better then any current human or device. The Ancestors begged to be granted a few ore-rich planets and have the current Squat Regiments of the Imperial Guard to be recalled, and be allowed to resettle their race. The High-Lords accepted their plea to a certain extent. In exchange for the STC, and in repayment for the Squats loyal service to the Imperium, they would be granted a small System of ore-rich Planets located in the far reaches of Ultima Segmentum, but the current Squat Regiments were to stay in active duty. The Ancestors, realizing that the Imperium was being vastly generous to a race that they could destroy on a whim, accepted the offer gratefully.

Settling down in the mining system of Kraka Secondus, the Squats initiated massive reforms in their culture, government, and military. Focusing the bulk of their remaining race to slowly rebuilding their race, while the military was culled and centralized into elite groups of soldiers, with advanced technology and equipment, that preformed missions at the behest of the Arch-Thane of Kraka Secondus, and noted Inquisitor, Arbrek Starbreaker. The greatest step forward has perhaps been the name "Squats" being officially banned by the Council on Ancestors, and the Arch Thane, and the new name "Dawi", the ancient Squat word for their race. Currently, Arch-Thane Arbrek has been called upon by the High-Lords, and has left the system with a Compliment of Hearthguard.

A personal friend of the Inquisitor, the Magos has studied the technology of the Squat race, and has worked over many years to develop the Dreadfire Machine. Combining the highest levels of Imperial Science and the most powerful of Dawi Relics, the Dreadfire Machine is one of the most powerful war-machines in the last century. While the Machine technically belongs to the Adeptus Mechanicus, Inquisitor Arbrek has "borrowed" the Dreadfire and the Magos to ensure it has a solid test run and stays safe.

High-Magister of the Centurions of Midas, Lord Ancile was picked for his mighty psychic abilities, as well as his highly trained Praetorian, who watch for corruption and guard their master. Typically, he leads his force as the spear-tip of the army, directing them as needed, and clearing the way for the Magos, and the Dawi.