Red Caps make a showing in The Gilding and play an even larger role in The Outsider. They are vicious creatures, believed to be evil goblins or sprites. They normally live in the borderlands between England and Scotland, but have built a flourishing kingdom next to Carlow.
Red Caps earned their name by the caps they wear that they soak in the blood of their victims. In their homeland, they must kill regularly, for if the blood staining their hats dries out, they die. However, the Red Caps that live adjacent to Carlow do not have this restriction and are able to survive dried caps.
Red Caps normally are small human-like creatures with long legs and arms, and sharp claws that they use as weapons. Red Caps are also known to carry scythes. In The Gilding and The Outsider, the Red Caps have added another weapon to their repertoire: a lasso they use to capture their victims. Normally used against fliers, such as fairies, the lassos tighten around the ankle and the Red Caps pull their victims to the ground.
Red Caps are known to be agile, but have difficulty climbing trees. They can scramble up rocks, jumping and running with agility.
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http://mythicalcreatureslist.com/mythical-creature/Red+Cap#sthash.Ghcs4LEu.dpuf
http://mythicalbeasties.blogspot.com/
Sketch is from myexistenz.com