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The Grimvaults

Commonly accepted to be the name of the massive stone arcade (said to be hewn from a single massive slab of black granite) on which rests the throne and court of the Wolf jarl, the Grimvaults is also the name of the dwarven city built just below Fridulfsburg.
  The spires and walls of men stretch up and the caverns and tunnels of dwarves stretch down, like the branches and roots of a tree. In fact, the largest dwarf-hold in Sjonderwold is situated just beneath the cellars and sewers of Fridulfsburg, and many secret passageways thread the hushed gap between the two cities. It is a well-known fact that few who delve too deep beneath the streets of Fridulfsburg come back alive, and the jarls are never quick to investigate what happens to the disappeared.
  The Grimstone dwarves have made a very few connections with merchants or other notable figures in Fridulfsburg in order to exchange coin for metals, gems, and delicacies unavailable from either side of their stony divide.
  Some dwarves even live relatively close to the surface, using deceptive building angles, uneven floors, and extremely tall boots to create personas of short but passable humans. These “inter-folk” serve as information brokers, currency exchangers, and hubs for the exchange of less-than-legal goods and services.
 

Benefits to Both Sides

It is in part through the Wolf’s secret relationships with the Grimstone dwarves that they are able to maintain such effective control over their territory. Goods and information flow more quickly along the carefully carved and patrolled dwarven tunnels, and in extreme cases even troops can be moved that way – with heavy obfuscation and near-total secrecy. The dwarves spare no one that pries into their business, even if by accident.
  The dwarves, for their part, have largely spent whatever time they have between expanding their mines and patrolling their domain with vicious and sometimes lethal politicking. It is not unheard of for human “incursions” into the dwarven halls to end in the death of a contentious political figure; incursions for which the humans are paid generously for right before they disappear.

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