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51 changes: 49 additions & 2 deletions docs/build/guides/transactions/clawbacks.mdx
Original file line number Diff line number Diff line change
Expand Up @@ -537,10 +537,57 @@ GDYIV7XB (Account A): 0 CLAW
```

<details>
<summary>Clawback Flow Chart</summary>
<summary>Full Clawback Flow Chart</summary>
```mermaid
flowchart TD
subgraph ASF["Account Setup & Funding"]
A["Account A (Issuer)"]
B["Account B (Trustor)"]
C["Account C (Trustor)"]
F["All accounts funded with 10,000 XLM"]

![example1](/assets/clawback/example1.png)
A --> F
B --> F
C --> F

end

subgraph ECT["Clawback & Trustlines"] EC["A enables clawback"] BT["B adds trustline for CLAW"] CT["C adds trustline for CLAW"] TL["Trustlines established"]

EC --> BT
EC --> CT
BT --> TL
CT --> TL

end

F --> EC

subgraph S1["Send 1000 CLAW"] P1["A pays B 1000 CLAW"] S1R["CLAW after A to B<br/>A: 0 CLAW<br/>B: 1000 CLAW<br/>C: 0 CLAW"]

P1 --> S1R

end

TL --> P1

subgraph S2["Send 500 CLAW"] P2["B pays C 500 CLAW"] S2R["CLAW after B to C<br/>A: 0 CLAW<br/>B: 500 CLAW<br/>C: 500 CLAW"]

P2 --> S2R

end

S1R --> P2

subgraph CB["Clawback Operation"] CB1["A clawbacks 250 CLAW from C"] CB2["Final CLAW<br/>A: 0 CLAW<br/>B: 500 CLAW<br/>C: 250 CLAW"]

CB1 --> CB2

end

S2R --> CB1

````
</details>

Notice that Account A (the issuer) holds none of the asset despite clawing back 250 from Account C. This should drive home the fact that clawed-back assets are burned, not transferred.
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