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Zelfrax is an evil spirit resembling a gargoyle in appearance who claimed to exist long before the mortal races and was responsible for corrupting, killing and enslaving (via undeath) those who settled on Witch Hill.
Zelfrax was in the process of driving Jarl insane as preparation for turning him into its next victim when the player arrives, with the aid of Mordant Grimsbly the player extracts information for the Risen Spirits around Witch Hill then utilize the power of the Witchbane Herb to draw Zelfrax out and slay the beast, ending the curse and saving Jarl from certain doom.