# Explaining SNIPER and BULLET

Everytime a user places a [DeOrder](https://deorderbook-1.gitbook.io/deorderbook-docs/deorders/explaining-a-deorder), they generate an amount of SNIPER and BULLET tokens matching the amount of HODL tokens they used to place the DeOrder.

### What are SNIPER tokens?

SNIPER tokens represent the option writer obligation, meaning the commitment to honor the order if it reaches the desired strike price before the chosen expiry date.

#### SNIPER token classes

SNIPER tokens come in a variety of **classes**. Each class consists of two parameters, a *strike* and an *expiration*. Expressed as follows:

$(asset)SNIPER${strike}–{expiry}

For example, the SNIPER issued for locking `$bHODL` tokens, with a strike of $60,000 and expiry on 1-JUN-2023 will be known as $bSNIPER60000–20230601.

#### SNIPER use cases

* SNIPER tokens are staked into the chosen DeOrder pool, where they automatically and consistently earn $DOB rewards until the DeOrder reaches its expiry date.
* SNIPER tokens can be combined with matching BULLET tokens to early unwind a DeOrder. This allows users to take back their collateral if it's looking unlikely their order will go in the money, maximizing capital flexibility.

### What are BULLET tokens?

BULLET tokens allow savvy market participants to execute DeOrders in a decentralized fashion according to principles of economic rationality and game theory. BULLET tokens represent the option buyer's right to exercise. [Gerege Gold ](https://deorderbook-1.gitbook.io/deorderbook-docs/gerege-nft-program/gerege-gold)NFT holders are awarded BULLET tokens when locking `$DOB` rewards back onto the protocol.

#### BULLET token classes

BULLET tokens come in a variety of **classes**. Each class consists of two parameters, a *strike* and an *expiration*. Expressed as follows:

$(asset)BULLET${strike}–{expiry}

For example, the SNIPER issued for locking `$bHODL` tokens, with a strike of $60,000 and expiry on 1-JUN-2023 will be known as $bBULLET60000–20230601. BULLET tokens of different classes are not fungible or directly interchangeable.

#### BULLET use cases

* BULLET tokens are sent upon generation to the protocol Treasury, where 20% is collected as fees. The remaining 80% is distributed to eligible users who have[ locked $DOB](https://deorderbook-1.gitbook.io/deorderbook-docs/usddob/locking-usddob), distributed via a daily [BULLET Raffle](https://deorderbook-1.gitbook.io/deorderbook-docs/sniper-and-bullet/bullet-raffle).
* BULLET tokens can be traded amongst users at the [BULLET Bazaar](https://deorderbook-1.gitbook.io/deorderbook-docs/sniper-and-bullet/bullet-bazaar). Buying BULLET tokens is an open feature at launch, but selling BULLET tokens will only be available for certain whitelisted addresses.
  * As part of its commitment to progressive decentralization, DeOrderBook will consult the community in the near future on implementing BULLET sales for a wider segment of users.

### What happens if I don't do anything with my claimed BULLET tokens?

BULLET tokens that are not either sold or used for exercising DeOrders will expire 24 hours after the corresponding SNIPER expiration date.