How magic works, and kobold society

I'll be the first to admit... while I have been heavily influenced by  webcomics like Goblins and YAFG, I don't really have the willpower to sit down and pour over source materials to make this a D&D world. The easiest way to get around obscure rules that future readers might point out and scream at me for? Declare ahead of time what things are like in "my world"

In my world, I draw magic from arcane and divine sources. Any spell that is cast draws its power from one of those two sources, and any caster in a particular school may draw from another spell list that uses the same school of magic. (IE, If you are a cleric, you can use ANY divine spell provided that you are high enough level to cast it, and it has been taught to you OR if you have a scroll that would allow you to cast it).

Some items, such as Vexa's trader staff, can be used to store spells. If an individual is compatible with the given spell - meaning that it belongs to the same school of magic that they are versed in, and they would be high enough level to cast it - the item will work without a hitch. If there is an incompatibility though, using the item comes with a price and a risk.

• Using an item that you do not have the level for costs magical energy. In dire straits, one can draw from one's "life energy". This is VERY risky though, and not at all recommended. More typically, magical energy is drawn from precious stones and valuable metals. Generally, the more expensive a good is, the more energy is stored inside it. Quartz has a very small amount of energy - therefore people don't like to use it, and there is plenty to go around. Diamonds have a large amount of energy, and so people use them for magic and deplete the supply. There are exceptions to this rule however. Animal based goods such as pearls and ivory do not have the same amount of magical energy as a stone or metal of the same monetary worth.
• Using an item that draws from a different source of energy than you are used to will cost experience points. This is true for those who are not trained in any magic at all as well, though the cost is far less for them than for one who tries to use an item of an opposing magic source. If there is not enough XP to cover the cost, the spell CAN go through - at the cost of one's life energy.
• Static spells, such as those that grant protections, do not cost anything to use, no matter what source they draw their magic from. These "property" items simply are. The spells are always on, and in time the magic placed on them will slowly leach away. The more magical energy that the base item has in it, the longer the spell will last. Thus, the diamond broach of poison resistance lasts much longer than say, the stone chalice of poison resistance, because diamonds have a high level of innate magical energy than plain stones.

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Our main protagonist Vexa is a kobold. Though there is significant amount of overlapping in this world, and the world of others, there are some things that I should spell out, as they will be important later.

Kobolds have an unhealthy infatuation with dragons. They pretty much worship dragons in the same way that they worship any other god in the pantheon. Most established clans will have their own "personal" dragon. They provide treasure for the hoard and other perks in exchange for wisdom and protection. How much of the exchange that actually takes place is highly dependent on the individual dragon. Honorable ones will give more than or equal to what they take, while corrupt ones will simply take treasure and ignore the pleas for help when adventurers come knocking at the kobold's door.

Their society is highly segregated, and though while it IS possible to move up in the ranks, it is very difficult. An individual's place in society is found in a window of time starting from before they are hatched to immediately after. Newly laid eggs are brought to the dragon for inspection (if for some reason, a clan does not have a dragon, the leader of the clan can also do this), where they will be evaluated for their potential. Those with the most potential will be placed in the warmest part of the hatchery, while those with less get shunted off to the cooler sands. After hatching, all hatchlings are checked for the color of their scales. The higher ranking ones will have a slightly metallic sheen, while lower ranks will have a solid matte coloring. On occasion, some will be born with dragon wings. No matter how much potential they were rated as having when they were inspected, being born with wings is an automatic upgrade to the upper echelons. Having both metallic scales AND wings is usually enough to warrant grooming for an important position, such as leader or high priest.

Kobolds place a high price on how useful one is. This highest insult is to call one "worthless" or "useless". Certain professions are more valued than others. Mining is the general catch all job for kobolds. It is a respectable job in their society, much like being an office worker in ours. Arcane casters are reserved for those with metallic scales, although if a youth shows extraordinary talent, exceptions can be made for their dull scaled brethren. At the bottom of the heap are those who remove the garbage and waste from the warren, or who handle the mounts.