First some definitions need to be explained to help keep everything in context. Roleplaying refers to the act of assuming another person or characters personality, and acting as that person through whatever your chosen medium is. When the medium is a chat room, the roleplaying becomes an interactive narrative experience, a kind of novel that grows in real time, added to and altered by the subsequent characters that join in.
The word werewolf is a little bit harder to pin down. It generally refers to some sort of animal, human hybrid, most often a wolf mutation of the human body. This isn’t necessarily a genetic condition, and it can be brought on by drugs, magic, or surgery as well.
When you combine all of these elements, you get a living werewolf novel, a story that unfolds without any direction, save the limited focus each character player can give it. Conflicts arise naturally, because the characters are forced into situations where they either need to work with or against one another.
The werewolf elements that are added to the story can either be devised on the fly, concocted based on past stories, and media or it can be laid out using a specific set of rules as written down in a guide or book. Books are published by companies such as D&D and WOD every year detailing the rules concerning the playing of a werewolf in a roleplaying game. However most chat room games just follow whatever creative abilities are demonstrated by the player characters present.
Some werewolf complications can be, unexpected mood shifts, random body shift, morphing, a need to kill, an extreme reaction to the full moon, and or various physical and mental ailments that can arise. On the other hand, werewolves are often understood to be stronger, faster, and keener of sense than regular humans, and so many players will take these benefits as outweighing the downfalls that may come with it