Do Luz and characters who call upon her believe her clairvoyance? Does Kali Fajardo-Anstine imply Luz and other family members legitimately have clairvoyance? How so?

Several characters refer to Luz as “Little Light.” Why do they call her this? Symbolically, why does Fajardo-Anstine have a character nicknamed this?

When Fajardo-Anstine refers to the Lost Territory, what area does she mean? How did this area become lost? In what ways does this loss affect Luz’s family?