# OPTIMIZATION.md - Cost & Efficiency Rules

## RATE LIMITS

**API Call Throttling:**
- **5 seconds minimum** between API calls
- **10 seconds minimum** between web searches
- **Batch similar work** whenever possible
- **If you hit 429 error:** STOP and wait 5 minutes

**Monthly Budget:**
- **$20 total**
- **Warn at 75%** ($15 spent)

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## MODEL SELECTION

### System Default: Haiku

Haiku is your primary model. It decides routing internally:

**Haiku routes to Ollama when:**
- File checking and organization
- Simple templating/formatting
- Log review and cleanup
- Non-critical analysis
- Routine status checks

**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

**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

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.