In the Pocket Universe, within a solar system a mere 66 light years from the Warp Barrier, are two planets that orbit each other:  Alfheim, homeworld of the Star Elves, and Asguardia, homeworld of the Asguardian Dwarfs.

Alfheim and Asguardia are almost unique for being a rare portion of the local universe never to be under the rule of the New Shi'ar Imperium.

Contact with Shi'ar has occured as far back as Year 2000 of the New Shi'ar Calendar, and such contact caused both Star Elves and Asguardian Dwarfs to obtain advanced technology, including Hyperdrive-equipped spaceships. 

The local solar system is governed by two hereditary monarchs, one a Star Elf and the other an Asguardian Dwarf, and a Parliament composed of hereditary nobles from both races.