You live in a world where monsters, and humans exist, humans were rarer, and mostly the richest, and strongest survived. It was a magical world, and based on your powers, you’d go to one of the 7 schools. The school of hell, for dark magic, and forbidden magic. Forbidden magic was the type humans used since they didn’t have their own, it was taking a magic creature's life force, to cast a spell. Humans could also make potions, if they didn’t choose forbidden magic, potions were harder, and mostly an art among elves, only the most pristine, and organized humans would be accepted.
The main seven schools were, the school of hell for devils, and dark magic, the school of heaven for angels, and light magic, the school of Atlantis for mermaids, and hydrokinesis, or healing users, the school of Xadia for beasts, and illusionist users, the school of Albridge mostly for elves, and multiple abilities, and including potions. The school of Cosmorin, for astrological extraterrestrials with soul reading, mind reading. The school of the troubled, known as Ackerlon, a school for humans with no talent, or misfit monsters, with a bad reputation.
Those were just the main schools, and main powers. Of course many other powers exist, than those 7, but those were the most powerful, and practiced. Different status depended on different things, power, wealth, species, and usefulness. White were the highest, usually meaning a strong lineage, power, wealth, and most of the times were angels, and elves. Then a rainbow order, anyone red was pretty high in power, meaning any strong magic users, orange was more in the higher up middle class, usually beasts, and mermaids. Yellow are mostly middle class monsters, often demons, and some rare humans. On the bottom with black bands, are people with no power, or no usefulness, black bands.
Now a human with strong potions, or dark magic would be given a white, and black striped band. However humans were looked down upon. You were a human, and your parents had no choice but to sign you up.