The vast majority of the villains on this wiki are fictional characters. These villains are the next step beyond that: they are fictional characters from works that are ALSO fictional.
In some fantasy stories, these villains may somehow enter the "real" world and become an actual threat to the protagonists (an example being Capricorn). On the other hand, the protagonist(s) may enter the villain's world (an example being The Story Teller). In more mundane cases, they remain fictionally fictional and are only ever seen as part of their fictional stories within the actual story. In some cases, they are called meta-fictional villains.