The Dali Kingdom was featured in DGSD, LOCH, and ROCH. During DGSD, Dali was one of five conflicting political entities (six if you include the Mo Yung Family's lost Yin Kingdom): Northern Sung Kingdom, Liao Empire, Hsi Hsia Kingdom, and Tubo Kingdom being the others. During L/ROCH, Dali coexisted with the Southern Sung Kingdom, the Jin Empire, and the Mongol Empire (the Hsi Hsia Kingdom still existed, but didn't really figure into L/ROCH much other than being the venue of some battles during late LOCH).
Was Dali considered a major military threat by any of its neighbors/rivals? Dali struck me as being a small country with very limited military resources compared to its neighbors, despite having elite martial artists as rulers.