# Session 009 -- Course Correction Implementation

## META
- date: 2026-02-14
- time: 18:00 UTC
- session_type: Implementation (plan execution)
- trigger: Founder requested full implementation of course correction plan after expressing loss of confidence in pivot direction
- plan_ref: `llmhost_course_correction_e009518b.plan.md`

## CONTEXT
Debate-002 identified 15 holes in the pivoted concept. Founder said: "you really need to get your shit together... fix it, everything, figure out how to do all this to where we reach our goals." Course correction plan was generated to address all 15 holes while keeping the simplicity gains from the pivot. This session implements that plan across 30+ files.

## WHAT WAS DONE

### 1. ADR-001: Orchestrator Model (REVISED)
- Replaced pure kNN with three-tier hybrid router
- Tier 1: kNN embedding (75%, <15ms, ~96MB)
- Tier 2: ModernBERT classifier (20%, <50ms, ~150MB)
- Tier 3: Qwen2.5-0.5B Q4 reasoning (5%, <500ms, ~400MB)
- Full VRAM budget math for 24GB, 12GB, 8GB GPUs
- All tiers fit in <1GB alongside inference models

### 2. ADR-004: Security & Networking (REVISED)
- Phase 1: localhost only (no networking complexity)
- Phase 2: `llmhosts tunnel` auto-detects Tailscale or Cloudflare Tunnel
- Phase 3: Headscale for Hive Mode ONLY (not personal access)
- User never chooses tunneling technology

### 3. ADR-008: CLI Distribution (REVISED)
- Tiered pip install: core (~50MB), smart (~150MB ONNX), full (~2GB PyTorch)
- npx scaffolder for JS/TS devs (Phase 2)
- Anthropic API dialect added (/v1/messages)
- First-run shows both API endpoints

### 4. Business Model (v3.0)
- Algorithms FREE (open source, unlimited local use)
- $19/mo Pro (from $15): cloud intelligence + coordination
- NO credits, NO per-routing charges, flat subscription
- Revenue starts Phase 1 via cloud cost dashboard
- Moat: aggregate data + tunnel coordination + community

### 5. Epic: Conductor (rewritten)
- Added CB-015 (ModernBERT Tier 2) and CB-016 (Qwen-0.5B Tier 3)
- CB-001 updated: OpenAI + Anthropic proxy
- CB-003 updated: honest cost tracking with routing decisions
- CB-011 elevated: routing explanation as trust feature

### 6. Epic: Compute Fabric (rewritten)
- Added CF-016 (`llmhosts tunnel` -- THE killer feature)
- Added CF-017 (multi-device mesh)
- CF-009 elevated: vLLM as real upgrade path with throughput comparison
- CF-010 demoted: Headscale only for Phase 3 Hive

### 7. Epic: Caching (rewritten)
- Replaced GPTCache with vCache (ICLR 2026)
- Three-tier cache: exact hash -> entity namespace -> vCache adaptive
- <1% false positive rate, formally guaranteed
- Added CACHE-001, CACHE-009, CACHE-010 for three tiers
- Added CACHE-011 (GenCache for agentic workflows)

### 8. Epic: Frontend (rewritten)
- FE-003 rewritten: honest savings with real baselines
- Added FE-020: routing decision transparency
- Added FE-021: onboarding baseline capture
- FE-013 updated: $19/$49/$50 pricing, no credits

### 9. Epic: Onboarding (rewritten)
- Added OB-011, OB-012: smart and full tier packages
- Added OB-013: `llmhosts tunnel` command
- Added OB-014: npx scaffolder
- OB-001 updated: core tier only ~50MB

### 10. All 3 Roadmap Layers (rewritten)
- Revenue targets per phase ($950 -> $3,800 -> $10K+ MRR)
- Tunnel feature prominent in Phase 2
- Three-tier router throughout
- Honest savings (30-50%) not inflated 60%

### 11. Project Context + AGENTS.md (rewritten)
- Vision: "Your hardware. Real AI infrastructure. From anywhere."
- Tech stack: three-tier router, vCache, Tailscale/Cloudflare, tiered pip
- Business model: algorithms free, data + coordination paid

### 12. Debate-002 (updated)
- Added Q2: course correction response with resolution per hole
- Added 7 observations (OBS-CC-01 through OBS-CC-07)

### 13. Backlog README (updated)
- Epic names and item counts updated
- Phase descriptions updated with revenue targets

## FILES MODIFIED (30+)
- `docs/architecture/adr-001-orchestrator-model.md` -- REVISED (three-tier hybrid)
- `docs/architecture/adr-004-security-overlay.md` -- REVISED (tiered networking)
- `docs/architecture/adr-008-cli-first-distribution.md` -- REVISED (tiered install)
- `docs/knowledge-base/saas-business-model.md` -- v3.0 (algorithms free, data paid)
- `docs/backlog/epic-conductor.md` -- rewritten (three-tier, Anthropic)
- `docs/backlog/epic-compute-fabric.md` -- rewritten (tunnel, vLLM upgrade, mesh)
- `docs/backlog/epic-caching.md` -- rewritten (vCache three-tier)
- `docs/backlog/epic-frontend.md` -- rewritten (honest savings, routing transparency)
- `docs/backlog/epic-onboarding.md` -- rewritten (tiered install, tunnel, npx)
- `docs/backlog/README.md` -- updated (names, counts, phases)
- `docs/roadmap/executive.md` -- v3.0 (revenue targets, tunnel, router)
- `docs/roadmap/detailed.md` -- v3.0 (full task tables updated)
- `docs/roadmap/full-pm.md` -- v3.0 (user stories, DoD, testing updated)
- `docs/debate/2026-02-14_debate-002.md` -- Q2 + 7 observations added
- `.cursor/rules/project-context.mdc` -- vision + architecture + business model
- `AGENTS.md` -- overview + tech stack + code structure

## OPEN DECISIONS
- None from this session. All 15 holes addressed.

## WHAT'S NEXT
1. Begin Phase 1 implementation (coding)
2. Python package skeleton with tiered extras (core/smart/full)
3. FastAPI proxy with OpenAI + Anthropic dialects
4. Ollama auto-discovery
5. Rule-based router (Tier 0)
6. Consider running a feasibility report before coding starts
