SAC Capital Advisors LP and prosecutors asked a federal judge to approve an agreement that would allow the hedge-fund giant to maintain business operations but restrict its ability to move assets elsewhere while facing criminal insider-trading charges, according to filings related to the case.

The terms proposed by SAC and the Manhattan U.S. Attorney's Office would require the firm to maintain at least 85% of the "aggregate value" of assets owned by the firm's "entity defendants" as of July 1, in exchange...