You can never miss your target with burst arrows, even with a distance skill of 10, since the explosion effect will always take place regardless of damage output or accuracy %. Burst arrows damage a 9 square area centered on the targeted monster or, in case of a miss, wherever it lands. They use your Distance skill to cause Physical damage. Their damage output is about the same as that of a bolt. Paladins can create 8 of them with the Conjure Explosive Arrow spell. A player with a Black Skull cannot use Burst Arrows. May be useful for paladins who fight creatures which come in packs, as it has a 100% hit rate to a direct target, and may still deal damage to nearby foes. This has its consequences, too, as in PvP worlds the burst arrow will hit players even if the paladin doesn't mean to.
During big team hunts in Hardcore PvP worlds, Paladins can attack their tank to do 9 square meters of damage to all surrounding monsters in case they are unable to use Diamond Arrows or they simply don't have enough of them.
Before Tibia version 8.0, the damage caused by Burst Arrows was based upon your level and magic level, so they were used primarily by Druids and Sorcerers. They were also frequently used in the Annihilator Quest. Burst Arrow damage is now based upon your Distance skill, so these days they are used almost exclusively by Paladins.