A waypoint marks the extent a Fair Folk affects an area. That's what defines it's boundaries
When a Lunar receives Exaltation they become something very strange, a coherent form of Wyld energy (to be able to live in their environment and combat the Fair Folk Luna was the same.) Unlike shaped Fair Folk they are self sustaining and do not need to feed on dreams or Virtues in order to maintain their presence in Creation, needing only the sustenance an ordinary mortal does. Likewise they enter the deep Wyld freely existing as a self conscious idea the way other Fair Folk do. Because they are effectively in the depths of the Wyld even when in Creation they can change their form at will.
Lunars make moonsilver artefacts out of Fair Folk Graces (as a questor would make a Wyld artefact) or the Essences of lesser Fair Folk. They can create a moonsilver Wonder out of the Essence of a powerful unshaped Fair Folk. The Fair Folk or it's Grace as an entity is destroyed but it is still dream and is gossamer (such is the fate of the Fair Folk that are vanquished by the Lunars) which is then transformed into moonsilver and formed into the artefact the Lunar wishes to create. Only the most _____ gods of dreams whose power is as terrible as it is legendary, can be formed into the greatest of moonsilver Wonders such as Royal Warstriders.
When vanquished by a Lunar their identity is destroyed and they become nothing but gossamer. The Lunar may then convert this into moonsilver to make their desired artefact. The Fair Folk fear this fate above all others and hate the Lunars for trying to inflict it on them and will fight the Lunars bitterly because they know their very survival is at stake, and consequently they will show no mercy if they win.
By destroying all five of a Fair Folk's Graces they render them, their Essence into gossamer.
One obvious roleplaying idea that comes to mind is playing emanations of an unshaped played by the storyteller.
The Fair Folk take assaults by the Lunars very personally. Since their identity is what they are, it's the difference between them and an inchoate quantity of gossamer, they take any attempt to destroy it very seriously. Other Fair Folk challenge it and try to control it through never ending shaping combat, predators exist who try to consume other Fair Folk and make them their own, but actually trying to undo a Fair Folk so it won't exist even as part of another being is a horror more sinister to them than anything they could otherwise imagine. Luna used to hunt Fair Folk having to overcome raksha who's Essence was as great as her's through guile and trickery and was infamous among the raksha for it. Having ascended to Yu-Shan after the Primordial War, this task she handed down to her champions.
As a person travels further into the Wyld it's power becomes more and more real. In Creation the power of the Fair Folk that does not affect matter is mere illusion, no more real than the onlooker's dreams. In the Wyld however, people are whittled down to their core Essence. Since all is Essence in the Wyld shaping attacks are real and people's Essences are completely exposed to the Fair Folk's magic.
