An outpost is always located in the centre of a sector. Outposts (except pirate outposts) are created by a player building from the remains of a destroyed outpost. Outposts can be upgraded by the original builder.
An outpost can be used to upload asteroid Materials from a player's ships storage into a player's Asteroid Storage. The upload process is not instantaneous, the length of time taken varies depending on the outpost being used and the material being uploaded. Initially you have two slots available to upload asteroid Materials but you can purchase more with Solar (200 for a third and 500 for a fourth slot). The amount you can upload in each slot is dependant on the size of the outpost. The bigger the outpost is, the more materials can be uploaded in each slot. The default amount that can be uploaded in each slot is 250. The builder of the outpost will take a cut of the asteroid Materials uploaded which is removed from the amount in the upload slot. Note that if an outpost is destroyed during the upload process you will lose any asteroid materials being uploaded in the slot at the time. The builder of an outpost has an additional option to transfer collected Materials, which is the cut of the Materials uploaded from other players. The maximum amount of asteroid Material that can be stored in this way is 500.
A faction outpost is one built by a player in a PvP sector.
A player outpost is one built by a player in a pirate sector.