# oToken Recipients The shift from solely receiving liquid tokens as rewards to receiving options as rewards alters how users interact with their provided assets by requiring them to be more active. To illustrate how receiving oTokens is different from traditional incentives, it’s beneficial to conceptualize traditional incentives as oTokens with a $0 strike price and an infinite eligibility window, in contrast to the structure of oTokens with a fixed strike price and a defined eligibility window. Even further, the reward window for both mechanics is temporary as liquidity provision is temporary. This new dynamic brings three considerations into play for users engaging with oTokens: #### **Payout Token and Price** oToken recipients need to consider the payout token they’ll receive upon exercising the oToken and its current market price. Assuming the options are American-style, the value of an oToken when received is at least the current market price minus strike price. If the strike price is above the current market price, it isn’t valuable to exercise at that moment. However, it isn’t worth zero since the market price could still go up before expiry. #### **Quote Token and Strike** oToken recipients must be aware of the quote token required for exercising the oToken and its fixed strike price. This element defines the exchange ratio between the quote token provided and the payout token received. #### **Eligibility Window** oToken recipients need to be familiar with the eligibility window during which they can exercise the oToken. This aspect gives them the context of when their opportunity to exercise will be available and when it will expire. ### Receiving oTokens Whether you plan to receive oTokens for participating in liquidity provision, bribe markets, yield vaults, or other mechanisms, the process is no different than standard incentive programs in the majority of cases. As long as you have made the necessary deposit, you will receive oTokens as you would with liquid rewards. ### Exercising oTokens When it comes to exercising oTokens, users can follow the steps below: * **Verify Key Parameters**: Review specific parameters mentioned in the prior section before exercising. This includes the expiry date, eligibility window, epoch length, and strike price associated with the specific oToken you hold. * **Initiate Exercise**: If all parameters align and you decide to proceed, you can initiate the exercise of your oTokens. This process allows you to convert your oTokens into the underlying assets they represent at a discount from market price. This action will most likely be carried out on the issuer’s UI. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.bondprotocol.finance/products/options-liquidity-mining/otoken-recipients.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.