Dwarven society is greatly influenced by their clan system. A clan consists of a large group of families related by blood or marriage. Clan traditions and secrets are claimed to originate from a common ancient ancestor or deity. The clan leader is charged with maintaining peace within the clan and to further its prosperity.

Dwarven society is dependent upon many different clans to fulfill their roles in order to thrive. Clans often specialize in different trades, such as banking, blacksmithing or mining. It is not rare to find entire businesses run by a single clan.

Clans function as self-containing cells within society, and they provide social security, education, military protection, spiritual guidance and collective property, such as mines. They also keep their own unique tradition and laws. In return a clan member is expected to be loyal unto death. Working members pay monthly tribute to their clan in order to support those faced with unemployment, disability, or agedness.

Individual status is determined by the clan's prominence with respect to other clans, as well as one's status within the clan. Status is attained by showing loyalty to one's peers and by achievements that contribute to the clan and society.