> For the complete documentation index, see [llms.txt](https://transmute-protocol.gitbook.io/transmute-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://transmute-protocol.gitbook.io/transmute-protocol/otoken-faq.md).

# oTOKEN FAQ

1. **What is an oTOKEN?**

oTOKENS are call option tokens that lets its holder purchase the underlying token at a discount to the market price. Unlike regular options, oTOKENS do not expire.

2. **How to exercise an oTOKEN?**

oTOKEN holders can exercise the right to discounted TOKENS by paying with MATIC, CASH, MAI, WETH to convert their oTOKENS tokens into TOKENS. The discount rate applicable depends on the underlying protocol and may be subject to change based on market conditions.