Although they do not know its purpose, they suspect that it may be a lesser daemon of the Chaos Powers, trapped in the rocks below the earth in ages past, and freed by the incessant digging of the Goblins and Orcs as they search for the lost treasure of the Dwarfs who once inhabited the city. The truth is that the daemon has escaped the prison of rock that held it for so long, and is now resident in a statue of a great fire dragon in an ancient temple (the firechasm). Soon it will fully awaken, and walk the world once more. The Wizards have employed the Warriors to destroy the daemon and ensure that this never happens.
Each Warrior has been given a magic sword, which can only be used once. These blades are the only weapons that can damage the daemon. Against other Monsters, the magic swords will hit automatically, and kill whatever wielder attacks.