Goblin Rocket Boots are slightly terrifying pair of Goblin designed boots designed to aid in a quick getaway.
These thick leather boots are lined with metal plates on the front, back, and on the soles. The underside of each sole contains two small jets, and when activated the device jets emit powerful blasts of fire, propelling an individual forward and increasing his running speed. Goblin rocket boots require an experimental substance called goblin rocket fuel. The boots have been known to malfunction and explode injuring the wearer and creatures around him.
The recipe for this item can be learned from a Goblin Engineering trainer.
During patch 2.3.2 the boots were hotfixed to require an Engineering skill of 225 to use, though it does not appear in the patch notes. The boots do indeed explode, and on average, after only two or three goes. The explosion does no actual damage, but does knock you down, and leaves you with ruined boots, although some components can be recovered from the wreckage.
In general, a cost prohibitive way to escape from trouble, and the Gnomish Rocket Boots are generally considered a better choice as despite being slightly slower and requiring Engineering skill to wear, they don't get destroyed when they malfunction.
However, there are theories that the Goblin boot explosion can be avoided if the speed effect is cancelled before the 20 second span is reached in full. 
Still... a plan without Rocket Boots, is no plan at all...
- Rocket Boots explode, knocking down the user and placing Scorched Rocket Boots in the user’s inventory, which can be looted for components. Contained inside will be: Black Mageweave Boots and Heavy Leather in addition to either Fused Wiring or Mithril Tube.
Notes: Transforms Black Mageweave Boots (41 Armor, +7 Intellect and +11 Spirit) into Goblin Rocket Boots (41 Armor and Use effect) which function identically to Gnomish Rocket Boots. If other increased movement speed or invisibility items (Nifty Stopwatch and Gnomish Cloaking Device) are equipped when Rocket Boots are used, a 5 minute cooldown timer will trigger preventing consecutive use. However, potions and class abilities (Swiftness Potion and Rogue Sprint) do not share this timer and may be used consecutively. Also, a Hunter's Aspect of the Cheetah and Aspect of the Pack will stack with this effect.