About physics assets

If you’re not doing any constraints, I would imagine that yes the physics asset should be very close, you can generate them tight to the mesh by making them Multi Convex Hulls (Advanced settings to give you more hull count/max hull verts) and you’d probably want to ensure you have polished physical materials set up on each interactable - good friction with character’s phys mat, etc. to ensure the object would stay put, though you could run into issues if you squeezed an object too much it would probably still fly off.

But for the stuff like in the video you posted, he says he’s tracking those as well in the mocap, but I assume you’re trying to find a completely in-engine way to do that without tracking the real-world objects?