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I've actually been thinking about this exact point of the lore: how all three sources of magic came to be. I imagined some Big Bang-esque event in which whatever form of chaotic magic that existed was broken down into three components, the ones we know today as two sources of magic that are entirely opposite to each other and a third component that, from what I understand, can give control over both...? Because with the sometimes (by that I mean often) clunky plot points of Ch1, it was never really specified what the white flame can and can't do. Sometimes people would tell us that it can do anything and sometimes they'd tells us that it has several limitations. 

To this day, after playing through Ch1 three times, I still don't understand if the MC is or is not the ruler over both Fade and Shade. By that I mean if he could learn to control shade magic if he wanted to, something that would be extremely useful in avoiding what Cammie and Mia did to him. One because he'd have more control over his feelings and therefore more resistance to the shade, and two because he'd be able to see someone setting a trap like Mia's from eons away just by feeling that very familar magic. Or, worst case scenario, would be more than capable to break himself out of said trap using shade magic. All in all I do hope that Fade and Shade themselves get some time in the update so we can learn even more about the magic and about them as well, 'cause I also wanna know what they truly are. Just angels? Goddesses that are the very sources of magic personified? Something deeper? And just how sexy can Shade's english accent possibly be? 

Wait a minute, ignore that last one-

Haha, I think I get what you're asking. Without spoiling too much...

As things currently stand, MC knows a little shade magic. Very little. He is still out of balance. At our currently released point in the story, MC is the carrier of the white flame. The white flame is where fade magic comes from. With that logic, shade magic must come from somewhere, yes? That is explored in this next episode that I'm nearly finished with. Plus, we'll learn just where it all began. Fade (the character) and Shade are 'products' of their related magic. Goddesses (Fade Goddess, Shade Goddess). Fade magic is more focused on love, while shade magic is more focused on lust. But both are fed by sexual energy, and... something else I don't want to spoil yet.

MC (the 'King') rules over all of the dream world universe, fade and shade. Even though he is mostly out of balance (mostly fade magic) he has absorbed the white flame (when he saves his mom, then sees her again - and he gets hit with all the lightning and shit). From that point on, he became ruler of all of it. Even though he hasn't mastered shade magic, the Shade Goddess is still one of his subjects.

Anyway, yes I wasn't good with the plot on some of the earlier part of the story. But it sounds like you pretty much got the gist of it.

Now that I think about it, I do remember Karen refering to him  as "ruler of the void" at one point (can't remember if it was before or after she is actually written in Serenity in her true self, but Ido remember this one piece of dialogue). So it was kind of specified, you just have to be damn attentive to dialogue itself and connect dots every now and again. 

Soooo if I had to guess... (and I have to, for now) I'd say shade magic was probably never really linked to evil and/or negative things, at least not until dark writting began. Because Shade herself isn't evil and never was, she doesn't want to plot against the king or anything, she just wants balance. And since shade magic is ALSO focused on lust (I previously thought it was purely focused on negative feelings and thoughts), I imagine that it's origin also isn't necessarily linked to any form of "primal evil". But I can't quite imagine what it would take to create the opposite form of magic to fade, which by itself originates from something even more mysterious and could very well be involved.