Dragons of the world of Ashan.

:confused: Why do the dwarves who live in the snow have a fire dragon???)

Because they live in volcanic craters. They are blacksmiths. Underground dwellers. And blacksmithing is associated with fire, hence Arcat.

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I think it should be an ice dragon. It would breathe ice and reduce the morale of enemies (like freezing).

Why, there is a "Lord of Cold" ability for the hero. To give a cold dragon the ability to freeze.