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Custom durability is a really powerful system that allows you to create items with a set amount of uses unlike the vanilla durability system which forces you to always have the same amount of uses for a type of item, unless you use the Unbreaking enchant which may just look unclean.
All items can have a Max Durability stat, which defines how many times the item can be used before either breaking or becoming unusable. The Lost when Broken item option defines whether or not the item will be lost when it reaches 0 durability.

Durability is displayed on the item vanilla durability bar, however you may also display the player's held item durability using PAPI placeholders. Items can be repaired at the anvil or using repairing consumables.

Durability Placeholders

• %mmoitems_durability% returns the amount of uses left of the item the player is holding.
• %mmoitems_durability_max% returns the item max durability.
  
• %mmoitems_durability_ratio% returns the item's durability ratio (from 0% to 100%).
  
• %mmoitems_durability_bar_square% returns the item durability as a progress bar.
  
• %mmoitems_durability_bar_diamond% returns the durability bar, but the char used is a diamond.
  
• %mmoitems_durability_bar_thin% returns a much thiner durability bar.