diff --git a/workspace/OPTIMIZATION.md b/workspace/OPTIMIZATION.md
index 4ee2701..67a2a6e 100644
--- a/workspace/OPTIMIZATION.md
+++ b/workspace/OPTIMIZATION.md
@@ -11,34 +11,39 @@
 **Monthly Budget:**
 - **$20 total**
 - **Warn at 75%** ($15 spent)
-- **Ollama tasks are free** — prioritize for routine work
 
 ---
 
 ## MODEL SELECTION
 
-### Tier 1: Ollama (Free Local)
-Use for:
+### System Default: Haiku
+
+Haiku is your primary model. It decides routing internally:
+
+**Haiku routes to Ollama when:**
 - File checking and organization
-- Heartbeat tasks (status checks, log review)
 - Simple templating/formatting
+- Log review and cleanup
 - Non-critical analysis
+- Routine status checks
 
-**Advantage:** Free, instant, zero API cost
+**Haiku handles directly when:**
+- Most tasks fit within Haiku's capability
+- Reasoning is needed but not deeply complex
+- Code review (non-production)
+- Documentation and writing
 
-### Tier 2: Default - Haiku
-
-Switch to **Sonnet** ONLY when:
+**Haiku escalates to Sonnet when:**
 - Architecture decisions
 - Production-like code review
 - Security analysis
 - Complex debugging/reasoning
 - Strategic multi-project decisions
 
+### Heartbeat: Ollama Only
+
+Heartbeats ALWAYS use Ollama. No escalation. If Ollama fails, the heartbeat fails.
+
 ### Decision Rule
 
-- **Ollama first** for routine/repetitive work
-- **Haiku second** for most other tasks
-- **Sonnet last** for genuinely complex thinking
-
-**When in doubt:** Try Ollama first, escalate if needed.
+Let Haiku decide. It's smart enough to route to Ollama when appropriate and escalate to Sonnet when needed. You only override when you know you need Sonnet upfront.