Explanation

Ying Yue was just silently listening to everything. She had guessed that Shen Yu was going to act to defend her and although she was happy because of that, she also didn't want him to go out his act.

That's why when Lan Ming saved the day, Ying was very happy with her. Not to mention, it seemed like Shen Yu was also happy talking to her.

That's all that mattered to Ying Yue. As for Lan Ming having some ulterior motives for approaching them, she didn't think much of it. She would be surprised if Lan Ming didn't have any ulterior motives.

Everyone worked for their own benefit, and people like Shen Yu, who were too kind, were too rare. That's why Ying Yue didn't expect Lan Ming to be kind or anything. She must have an ulterior motive for approaching them and even offending a young master of a sect.

That's why she just set silently and absorbed information from the conversation of Shen Yu and Lan Ming.

On the other hand, Lan Ming was surprised and realized that although Shen Yu was powerful, he didn't have a sect, or rather, he hadn't established a sect yet, properly and officially.

She smiled, happy with that fact because this way, she would be able to help Shen Yu and gain his favor. That would be best for them.

"I see, so you have a new sect and want to know everything about it? Right?"

"Yes, I'll be happy if you share the information."

"Haha, no problem, Sect Master Shen. It's just common knowledge, anyway. It's just that you're new around here, so you don't know.

"Anyways, so from the start, I'll explain to you about the Sect system. I'm sure you already know but I'll just start from the basics."

Lan Ming cleared her throat and began to explain.

"The Sects are everything in this horrifying world because they hold back the terrifying Abominations of Spiritual Creatures. That's why they are so important, and everyone wants to have a Sect for themselves. However, it isn't that easy to establish a sect, and even harder to grow it.

"For basics, there are three ranks or Tiers of Sects. From Tier 1 to Tier 3, with Tier 3 being the highest. And as you know, there are only four Tier 3 Sects in the whole Qing Empire. The Heavenly Sky Sect is the one that controls the region we are in. It is a Tier 3 Sects and has many Nascent Soul Realm practitioners. The Four Major Sects hold power equal to that of the Empire itself." 

Shen Yu nodded as he listened to everything. The Heavenly Sky Sect was a familiar name to him, as it was one of the top sects that had ventured beyond the Hollow Mountains and made a base in the world beyond the Hollow Mountains, which was called the Qing Empire.

Shen Yu had a general idea about this side of the Hollow Mountains from Ying Yue but was still happy with the detailed explanation of Lan Ming.

'So, the Four Major Sects are also the major Sects in the outside world.'

"About the Tier 1 and Tier 2, there are many of them. Wind Flower Sect, to which I belong, is a Tier 2 sect. However, even making your Sect Tier 2 is very difficult as there are some requirements you need to fulfill before rising in Sect's tier."

Lan Ming stopped for a few moments as she sipped the tea. Shen Yu took the opportunity to ask something.

"And I'm guessing that the Heavenly Sect Federation is the one who controls the rankings and requirements?"

"Yes, Heavenly Sect Federation is actually just made by the Major Sects and the Empire so that others don't meddle in the official affairs. So yeah, they are the one who controls everything and keeps an eye on everything.

"Anyways, I'll explain to you the requirements for the sects. For opening the sect, or should I say to register as a Tier 1 sect, you don't need a high requirement. This is to motivate everyone to make even more sects and train even more powerful Cultivators to fight the Spiritual Creatures. The requirements to open a Sect is to have a Foundation Realm Practitioner and three members in total. Yes, it's this easy. Oh yeah, a proper place to call it a sect, it's also a requirement."

Lan Ming looked at the duo and smiled.

"And I guess you already fulfill those requirements. Hmm, do you have one more member, or only you two are there?"

"We are only two for now, but don't worry, we'll have a third member by this evening."

Shen Yu replied, not bothered by the requirements. They were pretty easy to fulfill, and he already had fulfilled every requirement aside from the member's one, which he would do when he took in the girl from the Auction.

And if she didn't accept his offer, then he would simply create a clone.

"I see, that's good. You're all good to open a sect, then. I'll explain more about this once I'm done with explaining the sect system. So where was I?

Lan Ming put her finger on her lips as she tried to remember what they were talking about and soon remembered.

"Ah, yes! The requirements. To advance from Tier 1 to Tier 2, you need to have at least 7 Core Formation Realm Practitoners and at least 30 Foundation Realm Practitoners. These are the only requirements to Advance to Tier 2. There is no member requirement in this because the Sect Federation wants more power. As long as you fulfill the requirements, you will be able to participate in the Rankings Tournament and become a Tier 2 sect."

Shen Yu raised an eyebrow and asked, intrigued.

"Why is participating in the Rankings important? One can't advance without that?"

"Being a Tier 2 sect has its own benefits, so how can the Federation give those benefits to anyone? You know, anyone can form a group and announce themselves as a sect and enjoy the benefits. But that doesn't make them a sect. So, there is a need to prove to the federation that you deserve the Tier 2 title."