# Purgatory

#### **What is Purgatory**

Purgatory is the lending system of Ape Church where users can <mark style="color:green;">**borrow APE using Gimboz as collateral**</mark> or <mark style="color:green;">**lend APE to earn interest**</mark><mark style="color:green;">.</mark>

When a loan is opened, the Gimboz is locked in the protocol (*Limbo*) and can be reclaimed once the loan is repaid.

<figure><img src="/files/RaV9Rm10fPlENwx83Jco" alt="" width="563"><figcaption></figcaption></figure>

#### **Borrowing Against Gimboz**

To borrow, a user selects an offer from the order book and locks a Gimboz as collateral. In return, they receive APE instantly.

Interest begins accruing immediately and continues until repayment. There is no fixed duration - the borrower can repay at any time to close the loan and retrieve the Gimboz.

If the loan is not repaid, after <mark style="color:green;">**21 days**</mark> the lender gains the right to claim the Gimboz.

<mark style="color:green;">**Interest & Repayment**</mark>

Each loan follows a fixed structure:

* <mark style="color:green;">**1% flat fee at the start.**</mark>
* <mark style="color:green;">**+0.4% per day**</mark><mark style="color:green;">,</mark> accruing hourly.

The total repayment amount increases over time, so repaying earlier reduces the cost.

<mark style="color:green;">**Order Book & Offers**</mark>

All loans are sourced from an open order book where lenders post offers.

Each offer defines:

* How much APE can be borrowed per Gimboz.
* How many loans are available at that price.

Borrowers can select offers manually or use <mark style="color:green;">**auto-borrow**</mark> to match with the best available terms.

<mark style="color:green;">**Lending APE**</mark>

Users can lend APE by creating an offer.

They specify:

* APE per Gimboz.
* Number of loans to fund.

When an offer is taken, the lender’s APE is deployed and begins earning interest. Upon repayment, the lender receives both principal and interest.

<mark style="color:green;">**Position Management**</mark>

Borrowers can track and repay loans at any time in <mark style="color:green;">**My Borrows**</mark><mark style="color:green;">.</mark>

Lenders can manage offers, track earnings, and claim repaid funds in <mark style="color:green;">**My Lending**</mark><mark style="color:green;">.</mark>

{% hint style="warning" %}
A loan remains open until repaid. After **21 days**, the lender can claim the Gimbo used as collateral if the loan has not been repaid.
{% endhint %}


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