I like Fedor but I honestly think he's afraid to fight in the UFC.
Fedor doesn't need the UFC. His legacy was cemented in the sport long ago. I also don't believe he is afraid of the competition in the UFC. Fedor is one of the most mentally strong and prepared athletes around. He has the utmost confidence. So much so, that he competes on his own terms and isn't reliant on the fallacy that one must compete in the UFC only. That myth has been propagated by Dana White. It is good for the sport to have a name as prominent as Fedor's compete for a rival, as it spawns greater competition and opportunities in the sport as a whole, instead of there only being one game in town.
However, I'm puzzled at his choice of opponent. If Fedor beats a relative unknown, it's to be expected and does little to add to his legacy. If he were to lose, it will all but cement his retirement on a sour note, even if the pay day is huge. Perhaps they are priming him for a bigger fight down the road after this, considering he's been retired for several years.