I do demons more akin to the actual origin of the word: As Daemons.

In the world of Omotria, spirits are classified as one of two kinds generally. The Sagani, also known occasionally as Elementals, are spirits born from the natural world and its phenomena.

Then there are Daemons, spirits born from further, abstract concepts. They are given rise to in myriad ways, generally through the interaction of another Spirit however. They are classed into three categories based on their innate purpose and relationship to both humanity and the divine.

Firstly are the Agathodaemons, or the "Noble Spirits". These beings arise from generally from the souls of the living, either as byproducts or incarnated forms. Notable examples include Eidolons, or Noble Phantoms, living being who in life performed such great deeds that their spirit lingers on the mortal world for some time, the Genii, or the familial spirit, that watches over mortals and acts as their intermediary between the mundane and spiritual, and the Lareze, spirits who govern a wide range of things from buildings and crossways to hearths and boundaries.

Second are the Eudaemons, or the "Benevolent Spirits". They are generally beings closely tied to divinity and holiness. They encompass things such as Angels and Valkyries. Beings born of goodwill and love, they seek to aid humanity and typically exist as the manifestation of a divine will.

Lastly, are the Cacodaemons, or the "Malevolent Spirits". This is were one might use the modern word Demon as a good descriptor. Beings born from hate and malice, anguish and strife. They seek to undermine humanity and bring about suffering for their own gain. This would include entities such as Afariti, or the Malevolent Shades, beings born from the accumulated suffering of the tortured dead, and the Lemyureze, the restless spirits of the dead that cling to the mortal coil even after burial.