Originally Posted by COXR650L
Fading is generally caused by the same symptoms you are having. Because the brake is dragging, the fluid heats up and eventually the brakes fade.
In your case the first thing I would look at is the linkage of the break pedal and see if it is binding and holding pressure on the slave, pull it apart, clean and re-grease. Next I would look at the caliper and make sure it is functioning correctly, pads are not binding on the pins, sliding free etc.
If those two things check out then Id do a full rebuild, but check the easy and cheap stuff first
Sorry - should have mentioned the brake pedal itself does not appear to be dragging at all. I have cleaned it as well and greased it up and it seems free to move at will when I have the bike parked...