The Divine Covenant (fully explained there) is an agreement between the gods of Llurien. As a result, the gods created the race of morkais from the daekais species, which subsequently became thought of as a race of the kais species. Magic and healing were given to the species/races, who created religions. Karelia had their sixth sense augmented and were given supernatural skills, and the Orb of Souls was created, along with the Seven Fates.