The P-Assets Standard is a framework for issuing and managing permissioned balances on Sui. It enables tokenization of real-world fungible assets with built-in compliance mechanisms, transfer restrictions, and regulatory controls.

1. Each address has a single vault (derived address, with easy discoverability). Objects can own vaults as well. This enables with account abstractions / defi protocols implementations
2. Vault uses address (object) balances, so RPCs work out of the box (wallet just treats the vault address like a normal one). Wallets/explorers needs to query for the derived vault address to get balances.
3. Balances can only move from vault to vault (either by safe vault-to-vault deposits, or deriving the recipient with unsafe_ calls)
4. When a transfer is initiated, a TransferFunds is issued, which can be resolved, on the PTB layer, calling the Command that is specified by the issuer. The issuer can "approve" it in their own package by presenting a witness. Any custom logic (KYC, checks) can be implemented there.
5. Clawback is available (vaults are shared and a clawback can be initiated using the issuer's witness).

(To be added: Issuers can attach "metadata" to user's Vaults (such as KYC stamps or AML stamps they issue), which they can then check on their transfer functions to restrict movement. Since vaults are shared, issuers can revoke these stamps at any moment).

• Permissioned Transfers: All transfers must go through vaults and be approved by custom transfer rules
• Vault-Based Architecture: Tokens can only be held in vaults, with automatic balance tracking
• Flexible Rules System: Each token type has associated rules that govern transfers with jurisdiction-specific compliance
• Optional Clawback: Regulatory compliance feature that allows token recovery when legally required

1. Setup: Registry is created as a shared object, token issuers register their tokens with rules
2. Vault Creation: Vaults are derived for each address that needs to hold tokens
3. Transfers: Initiated from source vault, creating a transfer request that must be resolved by the rule
4. Resolution: Token-specific smart contracts validate and approve transfers based on compliance rules

The standard uses derived objects for predictable addresses:

• Single vault per user which holds the balances of the user
• No indexing required - vault and rule addresses are deterministically computable
• One query to see all user balances via dynamic fields on their vault

Each rule contains Command instructions that tell SDKs exactly how to resolve transfers - no need to understand complex on-chain logic. SDKs simply read the command and construct the appropriate transaction.

• Ownership Proofs: Ensure only legitimate owners can initiate transfers
• Transfer Restrictions: All transfers generate hot potato requests that must be resolved by the issuer
• Immutable Clawback: Optional feature that can only be set at registration

• Regulatory Compliance: Built-in KYC/AML (or any arbitrary logic) support for issuers
• Flexibility: Custom rules per token type with extensible off-chain resolution mechanisms