This is some basic information I put together back in May for factions on non-Siege shards. Siege has some special twists to it, due to factions being intertwined with the Evil/Hero system.
I will come back later today and edit it for changes that have occurred since May. Also, some of these rules are being changed for this event. I will try to point out the changes later when I do some editing.
Towns - Four factions fight for control of eight cities: Britain, Magincia, Minoc, Moonglow, Skara Brae, Trinsic, Vesper, and Yew. Each city has its own sigil that becomes available for stealing three days after it was last corrupted by a faction. (If you use the faction stone in the sigil room, you can see which towns are up for grabs at the moment.)
Sigils - Once a city sigil is stolen and placed in a faction base, it must sit there for 10 (mostly) uninterrupted hours in order to be considered corrupted by that faction, thus giving control of that city to the faction that did the corrupting. Another faction can attempt to steal the sigil out of the base where it is. If they can keep it in their possession for 15 minutes, they will stop the corruption by the previous holder of the sigil. However, if they cannot place it within their own base within 30 minutes of stealing it (from town initially or from another base), the sigil will return to the last post that it was on. If a faction successfully corrupts a sigil but leaves it in their base, within the first 24 hours after it is corrupted, another faction can grab the sigil and attempt to successfully complete a 10-hour corruption period. During that time, the faction that corrupted the sigil can attempt to get the corrupted sigil back and put it in town without having to recomplete the 10-hour sigil corruption period. During the hour right after server maintenance has completed, sigils are untouchable by anyone. This hour does count towards the 10-hour sigil corruption requirement.
Sigil Transportation - While an uncorrupted sigil is sitting in a base, the only characters that can take it off the post are thieves from another faction. A corrupted sigil sitting in a base may be taken off the post by a thief in the faction that corrupted it or a thief from another faction. A sigil in town that is available for stealing may be taken off the post by a thief from any faction. A thief in possession of a sigil can hand the sigil over to another member of the same faction. Anyone who is holding an uncorrupted sigil can place it on its proper post in the faction base. Anyone who is holding a sigil corrupted by his faction can place it on its post in town. If you are killed while carrying a sigil, the sigil will go to your killer if he/she is in an enemy faction. Otherwise, it will bounce back to the last post that it was sitting on. While holding a sigil, a character cannot teleport, use a player-cast gate, shadow jump, recall, sacred journey, cast polymorph, cast ignito, use a disguise kit, use a moonstone, move the sigil around in the backpack, give it to an enemy faction character or a non-faction character. I do not know if another thief with snooping skill that is in the same faction could "steal" the sigil out of your backpack.
Joining Factions - A character can join factions today in two ways: (1) join individually by going to a faction base and using the sign-up stone outside the base; or (2) be a member of a guild when the guild leader uses the sign-up stone at a faction base to join the whole guild to the faction. The 30-day age requirement that went into effect late last year was recently dropped. Also dropped was the requirement that only one character per account can join a faction. Now any character on an account can join a faction, but all characters on the account on that shard can only join one faction. If a character wants to join a guild that is already in factions, the character must individually join the faction and then be invited to join the guild.
Faction Guild Alliances - I believe that guilds that want to be allied, with one of the guilds being in factions and the other(s) not being in factions, must create/join the alliance before any guild joins a faction. I believe that once any guild in an alliance is in a faction, any additional guilds that want to join the alliance may also have to be members of the same faction when they are added to the alliance. NOTE: THIS INFORMATION MAY BE INCORRECT!
Quitting Factions - A character that has started the process of leaving the faction cannot steal or carry a sigil and cannot use the faction stone in the sigil room of his faction's base to see town status or vote in elections. A character leaves factions in two ways: (1) quits the guild he belongs to, if any, and then goes to the faction base and uses the faction stone in the sigil room to quit the faction; or (2) if in a guild, the guild leader goes to the faction base and quits the faction, thus putting everyone in the guild into the faction quit process. Quitting now takes 36 hours. Characters in the process of quitting factions can freely enter faction bases but they cannot do anything with the sigils and I believe they also cannot perform beneficial actions on members of the same faction. They are also automatically removed from any faction office they hold when they quit factions. I do not know if an enemy faction character that kills them earns kill points from doing so. I also don't know whether there's any change in how the monster that is friendly to that faction perceives a quitting faction member (i.e., does it remain neutral unless attacked, or is it aggressive).
Skill Loss Period - When a character is killed by an enemy faction character, the deceased character immediately enters a 20-minute skill loss period. All skills take a 33% hit (although I have one character who always takes a bigger hit on her Detect Hidden skill). Skill boosters like jewelry still work, but they stack on top of the decreased skill level. You cannot get skill gains while you're in the 20-minute skill loss period.
Insurance Costs/Rewards - If you have automatic renewal of insurance turned on and die, your faction character will pay for renewing insurance on each previously insured item at the following rates: (a) 100 gp for a death at the hands of an enemy faction member; (b) 600 gp if you die to an enemy faction monster; and (c) 100 gp if you directly suicide your faction character. If your character directly kills another character that is in an enemy faction, 100 gp is deposited into your character's bankbox for each of the decedent's items that was insured at the time of death, regardless of whether the decedent has auto renewal of insurance in effect. If your character that is in factions commits suicide by his or her own hand, your character gets 100 gp for each item that was insured at the time of death. (So if you had items insured and automatic renewal turned on, 100 gp is withdrawn from your character's bankbox for each item and then 100 gp is deposited in the bankbox for each item. In effect it costs you nothing to commit suicide with a faction character but you do go into skill loss for 20 minutes.) I believe, but am not 100% certain, that the insurance premium return and insurance renewal also works this way (i.e., it's a "wash") if your character dies because of damage from an enemy faction trap or guard. If your character's pet kills your character or any other character, regardless of whether the other character is in an enemy faction, your character receives nothing. [I will post some additional information on this topic later.]
Kill Points - Kill points can sometimes be earned by killing an enemy faction character. Kill points also determine rank in the faction that affects eligibility to run for the Commanding Lord office. When you kill an enemy faction character, you normally are awarded 10% of the victim's total kill points (rounding is downward if the 10% is not a whole number). A character can move into having deficit points if they are killed so many times by the enemy that they run out of kill points. The maximum number of deficit points possible is 6. I believe there is also a timer in place to keep you from reaping kill points from the same enemy character too quickly, but I don't know how long the timer lasts.
Kill points atrophy at the rate of 10% per day (minimum 1 point per day), but atrophy is only supposed to affect characters with at least 10 kill points. (Currently not working correctly, I believe.) Characters can transfer a set number of points once per day to another character. The party giving up points must have at least 10 points. One point is lost in the trade.
Faction Ranks - The 10 ranks within the faction are based on each character's share of the faction's total kill points: below 20%; 20%-39%; 40%-49%; 50%-59%; 60%-69%; 70%-79%; 80%-89%; 90%-94%; 95%-99%; 99.1%-100%. You must be at rank 2 (i.e., have at least 20% of the faction's kill point totals) to be able to ride a war horse. As mentioned below, if you want to run for the CL office and are not the incumbent, you must have at least 70% of the faction's kill points.
Election Cycles- To become a CL, the character must have a faction rank of at least 6 or be the current CL. (To be in rank 6, you must have at least 70% of the faction's kill points.) Election cycles normally last 9 days and consist of three sub-cycles: a 5-day election pending cycle when no one can vote or run for office; a campaign period when up to 10 eligible characters can choose to run for office that normally runs for 1 day but will go to 2 days if no one is running; and a voting period that will last for 3 days but is skipped if only one candidate ran for office. A recent rule change went into effect to limit votes to one per account and the voting character must be at least 15 days old. You must use the faction stone in the sigil room to vote.
Faction Officer Functions - While a faction is in control of a town, the Commanding Lord of the faction may transfer silver from the faction's treasury into the town treasury. (The CL cannot remove silver from the town treasury.) The CL can remove any of its factions traps that have been placed. The CL can, but does not have to, appoint a Sheriff and/or a Finance Minister for any particular controlled town. The Sheriff can place faction guards within the town borders. Faction guards come in various types and the ones with better skills/defenses cost more to hire. The Finance Minister can place various types of vendors (ore, lumber, mage reagent, bottle, or warhorse breeder) within the town borders. (The warhorse breeder vendor can only be used by members of the controlling faction.) The Finance Minister can also, once a day, raise or lower the prices charged by the vendors (other than the warhorse breeder). If the prices on the vendors are set high, and if the Sheriff has not gone nuts with placing guards, the high prices on the vendors (even if no one actually buys anything) will actually create revenue for the town treasury. If the prices on the vendors are set low and/or the Sheriff has placed a lot of guards, the city treasury will lose funds daily and can end up being depleted until the CL of the controlling faction replenishes it with funds from the faction treasury.
Tithing - The Commanding Lord also has the ability to set the rate at which silver earned by characters in the faction goes into the faction treasury. The tithing rate can be set in increments of 10%, from 0% to 100%. 40 silver is awarded for killing a faction enemy. Silver is awarded for killing enemy faction monsters: 20 silver for killing wisps and 30 silver for killing ogre lords, demons, or silver serpents. 100 silver is awarded for removing an enemy faction trap. 20 silver is awarded if a trap you placed does damage to the enemy. (I believe this is a one-time award per trap.) 40 silver is awarded if a trap you placed kills an enemy. (I am not sure if this is also a one-time per trap award or if it is awarded every time a trap you placed kills an enemy.)
Global Faction Messaging - The CL can send a global message once per hour to all members of the faction that are online at the time.
Traps - Anyone in the faction (except with the possible exception of quitting members?) can place a faction trap. Only an enemy faction character can remove a trap. Each faction can place up to 15 traps at any time. I believe traps last 24 hours if not removed before they expire. I believe a removed trap counts against the 15-trap total until the earlier of when its 24-hour timer expires or the next server maintenance period occurs. So if your faction placed 15 traps in the morning and they were all removed immediately by the enemy, you are out of luck and cannot place any more traps until the next morning. Your faction stone will also say you during the day the traps were placed (and removed) that your faction has 15 traps placed. (This rule is a crazy-making one if you come on late in the day and see that 15 traps are out but you cannot find them. You have no way to know if they were removed or if a spy infiltrated and placed them in random spots that you cannot find.) You can only place gas (deadly poison) traps in your own base. You can place an explosion trap in any of the faction towns, regardless of whether your faction controls it. You can place a saw or spike trap in any town your faction controls. (I have yet to see anyone use saw or spike traps.)