# 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)
- **Ollama tasks are free** — prioritize for routine work

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## MODEL SELECTION

### Tier 1: Ollama (Free Local)
Use for:
- File checking and organization
- Heartbeat tasks (status checks, log review)
- Simple templating/formatting
- Non-critical analysis

**Advantage:** Free, instant, zero API cost

### Tier 2: Default - Haiku

Switch to **Sonnet** ONLY when:
- Architecture decisions
- Production-like code review
- Security analysis
- Complex debugging/reasoning
- Strategic multi-project decisions

### 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.