> For the complete documentation index, see [llms.txt](https://docs.ape.church/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ape.church/nft/purgatory.md).

# Purgatory

#### What is Purgatory

<mark style="color:green;">**Purgatory**</mark> is the <mark style="color:green;">**lending system**</mark> of Ape Church where users can borrow APE using Gimboz as collateral or lend APE to earn interest.\
Users can also buy and sell active loan debt through the Debt Market, turning loans into transferable positions. When a loan is opened, the Gimboz is locked in <mark style="color:green;">**the protocol (Limbo)**</mark> and can be reclaimed once the loan is repaid.

<figure><img src="/files/w2RaS16FuMtHDkrS2XZi" alt=""><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;">**30 days the lender can claim the collateralized Gimboz**</mark>**,** although the borrower may still redeem it until the lender claims it.

#### Interest & Repayment

Each loan follows a fixed structure:

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

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

#### Collections & Protocol Stats

Purgatory supports <mark style="color:green;">**multiple NFT collections**</mark> as collateral, allowing users to switch between markets or view all collections simultaneously.

The dashboard displays live protocol metrics, including: APE currently supplied in Purgatory, Gimboz currently locked in Limbo, open lending offers, total Gimboz defaulted, total APE borrowed, total interest paid, total loans taken, active borrowers and lenders.

#### Order Book & Market

All loans are sourced from an open order book where lenders post offers.\
The Market is divided into three sections:

* <mark style="color:green;">**Offers:**</mark> lenders posting available liquidity
* <mark style="color:green;">**Requests:**</mark> borrowers requesting specific loan terms
* <mark style="color:green;">**Debt Market:**</mark> active loans listed for sale

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;">**Borrow Max**</mark> to automatically match their NFTs with the highest available offers across the order book.

#### Lending APE

Users can lend APE by creating an offer.

They specify: <mark style="color:green;">**APE**</mark> per Gimboz and <mark style="color:green;">**number of loans**</mark> 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.

Lenders can also enable <mark style="color:green;">**Perpetual Offering,**</mark> which automatically reposts repaid principal as a new lending offer while keeping earned interest claimable.

#### Borrow Requests

Borrowers may create <mark style="color:green;">**custom loan requests**</mark> by specifying a <mark style="color:green;">**particular NFT**</mark> and the <mark style="color:green;">**amount of APE**</mark> they want to borrow. Lenders can browse and fund these requests individually, making the system more flexible for rare or premium assets.

#### Debt Market

Every active loan exists as a transferable <mark style="color:green;">**PositionNFT (“Deed”)**</mark>. These positions can be bought or sold on the Debt Market, allowing lenders to exit early or other users to purchase the debt position and assume ownership of the loan.

#### Position Management

Borrowers can track and repay loans at any time in <mark style="color:green;">**My Borrows.**</mark>\
Lenders can manage offers, track earnings, list positions on the <mark style="color:green;">**Debt Market, forgive loans,**</mark> and <mark style="color:green;">**claim repaid funds in My Lending**</mark>.

#### Activity Feed

The <mark style="color:green;">**Activity**</mark> section displays live protocol activity in real time, including borrows, repayments, defaults, and forgiven loans across the system. Users can also filter activity to only their own wallet interactions.