1.)  There are dragons and they are the daughters of Bahamut--one of the New Gods. There are only seven of them left after the Age of Magic, during the War of Fire and Blood. They are the Celestial Dragons and currently are scattered all across Midgard within human hosts. There are whispers from the North of a Second War of Fire and Blood, but that can't be possible if there are only seven Dragon's left... There are also orcs. They're the peaceful type though. They farm and have close ties with some human cities.

2.) Makai is the force that holds the world together, and anyone gifted enough to tap into the Makai Grid, are trained to be either a Knight or a Priest. Once tapped into the Grid, Knights and Priests use alchemy and martial arts to re-weave the fabric of the world. 

3.) You're correct in that the characters are relatively low on the power scale compared to other sentient beings like Dragons and gods. What I was referring to is that the story itself is "bigger than you" (than the characters). Everything can be connected one way or another. A very small and insignificant event--something as small as bumping into someone--can be part of another bigger event outside of the main story. 

4.) The New Gods are the remaining sons and daughters of the Old Gods. They waged war on their parents, cast them out into darkness and as a result lost most of their other siblings. There are only nine left. They rebuilt the universe from scratch and thus we have our main story world. They're not very active. They just like to observe and let things happen as they will. That doesn't mean they CAN'T be active but for the most part they stay out of human business. However, the Cerberus did try and wipe out the planet Titan out of jealousy. The humans, elves and orcs joined together and sealed away Baast. One of the keys is missing, and it's possible that Baast has escaped...

"Jupiter Optimus Maximus, the Shining Father
Bahamut, Draconian of Blood and Fire
Felicitas, Lady of Luck and Chance
Hrothgar, Alchemic of Iron and Stone
Aqua, Leviathan of Water and Thunder
Aria, Anemoi of Wind and Song
Baast, Cerberus of Rage and Shadow
Garland, Knight of Magic and Knowledge
Kitusne, The Ninth of Trickery
Since the time before time, they have watched over Titan"


The time frame is just an estimate! I should be able to post more than that as well, especially during the daytime!