"No--they're being kept within the castle. Prisoners just as we are, just in a gilded cage with better food and clothes and rooms. They often wander down here to gawk at those of us less fortunate, and ask us what we've done to receive the label of 'failure', as if we're supposed to have an answer to that question. They wear fine cloth tunics, but are labeled with their sign just like us."

He's being thorough, because he's not sure what information the newcomer will find useful yet.