diff --git a/MEMORY.md b/MEMORY.md
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+++ b/MEMORY.md
@@ -51,6 +51,22 @@
 
 **Why different from Claude Code:** Claude Code is CLI-first with routing-heavy design. Clawdbot is conversational — single capable assistant who calls for backup when needed.
 
+### 2026-01-26 - LLM Routing Principles
+**Local First** — Use local LLMs (llama-swap @ :8080) when:
+1. **Privacy/Confidentiality** — Sensitive data never leaves the machine
+2. **Long-running tasks** — No API costs, no rate limits, no timeouts
+3. **Parallel work** — Spawn multiple agents hitting local endpoint
+
+**Always check availability** — Local LLMs may not be running:
+```bash
+curl -sf http://127.0.0.1:8080/health
+```
+
+**Routing priority:**
+1. Local (free, private) → 2. Copilot (free-ish) → 3. Cloud APIs (paid)
+
+**Never send sensitive data to cloud APIs without explicit permission.**
+
 ## Preferences Discovered
 
 *(Add as I learn them)*