2.3 Transfer and Ownership Finality

Transfers within the Parax network are enforced through a smart contract stack that ensures atomicity, authenticity, and rule enforcement. Ownership of ERC-721 or fractional ERC-20 tokens is synchronized with custodial state changes via oracle attestations and time-stamped proofs.

For assets under high-value custody, transfer of the token implies custody reallocation instructions to the custodian (e.g., vault transfer, legal ownership re-registration). For fractionalized assets, ownership changes are recorded exclusively on-chain unless a party initiates full buyout and redemption.

Finality is achieved through the combination of:

• On-chain consensus (token transfer)

• Off-chain event confirmation (custodial system updates)

• Oracle attestations (validator or vault signature)

This layered finality model enables Parax to maintain compliance with real-world legal and custodial constraints while preserving the immutability and integrity of decentralized ownership.