Abstract The “fakeon” is a fake degree of freedom, i.e. a degree of freedom that does not belong to the physical spectrum, but propagates inside the Feynman diagrams. Fakeons can be used to make higher-derivative theories unitary. Moreover, they help us clarify how the Lee-Wick models work. In this paper we study the fakeon models, that is to say the theories that contain fake and physical degrees of freedom. We formulate them by (nonanalytically) Wick rotating their Euclidean versions. We investigate the properties of arbitrary Feynman diagrams and, among other things, prove that the fakeon models are perturbatively unitary to all orders. If standard power counting constraints are fulfilled, the models are also renormalizable. The S matrix...