The Literati are a secret organisation of spies and thieves according to Varis, who is involved in some form of resistance against them. The Literati exists not just in Acanthia but also throughout the Empire, where it is known by multiple names. Varis also hinted rather cryptically that the Literati are interested in control through information.
Not surprisingly, it is very difficult to come across concrete information about the Literati. Most of the party’s interaction with the Literati comes through encounters with the troublesome Red Cloaks, who ironically are a highly visible Literati faction and make few pretenses to secrecy.
The Red Cloaks
The Red Cloaks are a Literati faction who has been following the party throughout the city, wearing voluminous full-length red robes with golden trim. They may have recently found out about the Blue Dragon’s cave in the western valley somehow, but the party is not sure yet.
The Red Cloaks do not appear to be suited to the heat of battle, but they have hired muscle (e.g. the barracks of soldiers next to Gael’s office) to take care of that for them when the need arises.