Yes. They are free. [And filled with modern conveniences as this place is, it's not like they're stuck eating a small amount of rice gruel or being deprived of chances at education or entertainment. Along with not being stuck in the prison outfits, it makes some semblance to a normal life possible in this underwater city.]
It's probably possible for you to be happy here. So long as you avoid the ones who are dangerous here. [But she can't trust any of them.]