Ancient Martial Arts families did not want to provoke these people nor did they wish to become entangled with these super reclusive sects, so they generally chose to keep a respectful distance. Coupled with weak border management, over time, a myriad of powerful and mysterious figures who gathered there actually formed their own set of rules to evade detection. This phenomenon was not unique to the Federation; every nation had such areas, and the more chaotic the region, the more common this phenomenon became.
Of course, it wasn't true that there was no way to track down the traces of these reclusive sects. It was rumored that every four years, they would hold a competition similar to one for the position of the chief disciple at some unknown location.
Although unknown to the public, this event was akin to a World Cup held every four years within the circles of the reclusive sects. It was said that Mansfield, the Mecha Battle Emperor, hailed from one of these reclusive sects.