paket.dependencies file is used to specify rules regarding your application's dependencies.
paket.lock file records the concrete dependency resolution of all direct and indirect dependencies of your project.
paket.references files are used to specify which dependencies are to be installed into the MSBuild projects in your repository.
This folder is used the same way a
.nuget folder is used for the NuGet package restore, that is to cache package archives for reference by the development project. Place this folder into the root of your solution.
It should include the paket.targets and paket.bootstrapper.exe files which can be downloaded from GitHub.
The bootstrapper.exe will always download the latest version of the paket.exe file into this folder.