It is the year 923 of the Second Era, a time of relative peace in the continent of Eryst, a time of trade and prosperity for most nations. But the history books still remember the chaos of the First Era, when nearly all nations were involved in long, bloody conflicts that seemed to have no end.
Eventually tired of centuries of war, or perhaps financially unable to sustain any more conflict, all nations of the continent convened a summit and laid down the treaty of Carbellis in which each government agreed to demilitarize in the interest of continental peace, marking the end of the era of war and beginning the era of peace.
This has mostly worked for the last 900 years, with only a few minor wars between individual nations. Every border dispute and perceived diplomatic slight are moments when nations hold their breath, waiting for a conflict to spiral into another continental war. Although no nation technically has an army, most have large contingents of guards and the treaty does not forbid non-governmental entities from having soldiers or guards, or mercenary companies.