diff --git a/internal/runtime/shared.go b/internal/runtime/shared.go
new file mode 100644
index 0000000..8174320
--- /dev/null
+++ b/internal/runtime/shared.go
@@ -0,0 +1,601 @@
+package runtime
+
+import (
+	"context"
+	"fmt"
+	"log"
+	"net/http"
+	"os"
+	"path/filepath"
+	"strings"
+	"time"
+
+	"chorus/api"
+	"chorus/coordinator"
+	"chorus/discovery"
+	"chorus/internal/backbeat"
+	"chorus/internal/licensing"
+	"chorus/internal/logging"
+	"chorus/p2p"
+	"chorus/pkg/config"
+	"chorus/pkg/dht"
+	"chorus/pkg/election"
+	"chorus/pkg/health"
+	"chorus/pkg/shutdown"
+	"chorus/pkg/prompt"
+	"chorus/pkg/ucxi"
+	"chorus/pkg/ucxl"
+	"chorus/pubsub"
+	"chorus/reasoning"
+	"github.com/libp2p/go-libp2p/core/peer"
+	"github.com/multiformats/go-multiaddr"
+)
+
+const (
+	AppName    = "CHORUS"
+	AppVersion = "0.1.0-dev"
+)
+
+// SimpleLogger provides basic logging implementation
+type SimpleLogger struct{}
+
+func (l *SimpleLogger) Info(msg string, args ...interface{}) {
+	log.Printf("[INFO] "+msg, args...)
+}
+
+func (l *SimpleLogger) Warn(msg string, args ...interface{}) {
+	log.Printf("[WARN] "+msg, args...)
+}
+
+func (l *SimpleLogger) Error(msg string, args ...interface{}) {
+	log.Printf("[ERROR] "+msg, args...)
+}
+
+// SimpleTaskTracker tracks active tasks for availability reporting
+type SimpleTaskTracker struct {
+	maxTasks         int
+	activeTasks      map[string]bool
+	decisionPublisher *ucxl.DecisionPublisher
+}
+
+// GetActiveTasks returns list of active task IDs
+func (t *SimpleTaskTracker) GetActiveTasks() []string {
+	tasks := make([]string, 0, len(t.activeTasks))
+	for taskID := range t.activeTasks {
+		tasks = append(tasks, taskID)
+	}
+	return tasks
+}
+
+// GetMaxTasks returns maximum number of concurrent tasks
+func (t *SimpleTaskTracker) GetMaxTasks() int {
+	return t.maxTasks
+}
+
+// AddTask marks a task as active
+func (t *SimpleTaskTracker) AddTask(taskID string) {
+	t.activeTasks[taskID] = true
+}
+
+// RemoveTask marks a task as completed and publishes decision if publisher available
+func (t *SimpleTaskTracker) RemoveTask(taskID string) {
+	delete(t.activeTasks, taskID)
+	
+	// Publish task completion decision if publisher is available
+	if t.decisionPublisher != nil {
+		t.publishTaskCompletion(taskID, true, "Task completed successfully", nil)
+	}
+}
+
+// publishTaskCompletion publishes a task completion decision to DHT
+func (t *SimpleTaskTracker) publishTaskCompletion(taskID string, success bool, summary string, filesModified []string) {
+	if t.decisionPublisher == nil {
+		return
+	}
+	
+	if err := t.decisionPublisher.PublishTaskCompletion(taskID, success, summary, filesModified); err != nil {
+		fmt.Printf("⚠️ Failed to publish task completion for %s: %v\n", taskID, err)
+	} else {
+		fmt.Printf("📤 Published task completion decision for: %s\n", taskID)
+	}
+}
+
+// SharedRuntime contains all the shared P2P infrastructure components
+type SharedRuntime struct {
+	Config               *config.Config
+	Logger               *SimpleLogger
+	Context              context.Context
+	Cancel               context.CancelFunc
+	Node                 *p2p.Node
+	PubSub               *pubsub.PubSub
+	HypercoreLog         *logging.HypercoreLog
+	MDNSDiscovery        *discovery.MDNSDiscovery
+	BackbeatIntegration  *backbeat.Integration
+	DHTNode              *dht.LibP2PDHT
+	EncryptedStorage     *dht.EncryptedDHTStorage
+	DecisionPublisher    *ucxl.DecisionPublisher
+	ElectionManager      *election.ElectionManager
+	TaskCoordinator      *coordinator.TaskCoordinator
+	HTTPServer           *api.HTTPServer
+	UCXIServer           *ucxi.Server
+	HealthManager        *health.Manager
+	ShutdownManager      *shutdown.Manager
+	TaskTracker          *SimpleTaskTracker
+}
+
+// Initialize sets up all shared P2P infrastructure components
+func Initialize(appMode string) (*SharedRuntime, error) {
+	runtime := &SharedRuntime{}
+	runtime.Logger = &SimpleLogger{}
+	
+	ctx, cancel := context.WithCancel(context.Background())
+	runtime.Context = ctx
+	runtime.Cancel = cancel
+
+	runtime.Logger.Info("🎭 Starting CHORUS v%s - Container-First P2P Task Coordination", AppVersion)
+	runtime.Logger.Info("📦 Container deployment - Mode: %s", appMode)
+
+	// Load configuration from environment (no config files in containers)
+	runtime.Logger.Info("📋 Loading configuration from environment variables...")
+	cfg, err := config.LoadFromEnvironment()
+	if err != nil {
+		return nil, fmt.Errorf("configuration error: %v", err)
+	}
+	runtime.Config = cfg
+	
+	runtime.Logger.Info("✅ Configuration loaded successfully")
+	runtime.Logger.Info("🤖 Agent ID: %s", cfg.Agent.ID)
+	runtime.Logger.Info("🎯 Specialization: %s", cfg.Agent.Specialization)
+
+	// CRITICAL: Validate license before any P2P operations
+	runtime.Logger.Info("🔐 Validating CHORUS license with KACHING...")
+	licenseValidator := licensing.NewValidator(licensing.LicenseConfig{
+		LicenseID:  cfg.License.LicenseID,
+		ClusterID:  cfg.License.ClusterID,
+		KachingURL: cfg.License.KachingURL,
+	})
+	if err := licenseValidator.Validate(); err != nil {
+		return nil, fmt.Errorf("license validation failed: %v", err)
+	}
+	runtime.Logger.Info("✅ License validation successful - CHORUS authorized to run")
+
+	// Initialize AI provider configuration
+	runtime.Logger.Info("🧠 Configuring AI provider: %s", cfg.AI.Provider)
+	if err := initializeAIProvider(cfg, runtime.Logger); err != nil {
+		return nil, fmt.Errorf("AI provider initialization failed: %v", err)
+	}
+	runtime.Logger.Info("✅ AI provider configured successfully")
+
+	// Initialize BACKBEAT integration
+	var backbeatIntegration *backbeat.Integration
+	backbeatIntegration, err = backbeat.NewIntegration(cfg, cfg.Agent.ID, runtime.Logger)
+	if err != nil {
+		runtime.Logger.Warn("⚠️ BACKBEAT integration initialization failed: %v", err)
+		runtime.Logger.Info("📍 P2P operations will run without beat synchronization")
+	} else {
+		if err := backbeatIntegration.Start(ctx); err != nil {
+			runtime.Logger.Warn("⚠️ Failed to start BACKBEAT integration: %v", err)
+			backbeatIntegration = nil
+		} else {
+			runtime.Logger.Info("🎵 BACKBEAT integration started successfully")
+		}
+	}
+	runtime.BackbeatIntegration = backbeatIntegration
+
+	// Initialize P2P node
+	node, err := p2p.NewNode(ctx)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create P2P node: %v", err)
+	}
+	runtime.Node = node
+
+	runtime.Logger.Info("🐝 CHORUS node started successfully")
+	runtime.Logger.Info("📍 Node ID: %s", node.ID().ShortString())
+	runtime.Logger.Info("🔗 Listening addresses:")
+	for _, addr := range node.Addresses() {
+		runtime.Logger.Info("   %s/p2p/%s", addr, node.ID())
+	}
+
+	// Initialize Hypercore-style logger for P2P coordination
+	hlog := logging.NewHypercoreLog(node.ID())
+	hlog.Append(logging.PeerJoined, map[string]interface{}{"status": "started"})
+	runtime.HypercoreLog = hlog
+	runtime.Logger.Info("📝 Hypercore logger initialized")
+
+	// Initialize mDNS discovery
+	mdnsDiscovery, err := discovery.NewMDNSDiscovery(ctx, node.Host(), "chorus-peer-discovery")
+	if err != nil {
+		return nil, fmt.Errorf("failed to create mDNS discovery: %v", err)
+	}
+	runtime.MDNSDiscovery = mdnsDiscovery
+
+	// Initialize PubSub with hypercore logging
+	ps, err := pubsub.NewPubSubWithLogger(ctx, node.Host(), "chorus/coordination/v1", "hmmm/meta-discussion/v1", hlog)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create PubSub: %v", err)
+	}
+	runtime.PubSub = ps
+	
+	runtime.Logger.Info("📡 PubSub system initialized")
+
+	// Join role-based topics if role is configured
+	if cfg.Agent.Role != "" {
+		reportsTo := []string{}
+		if cfg.Agent.ReportsTo != "" {
+			reportsTo = []string{cfg.Agent.ReportsTo}
+		}
+		if err := ps.JoinRoleBasedTopics(cfg.Agent.Role, cfg.Agent.Expertise, reportsTo); err != nil {
+			runtime.Logger.Warn("⚠️ Failed to join role-based topics: %v", err)
+		} else {
+			runtime.Logger.Info("🎯 Joined role-based collaboration topics")
+		}
+	}
+
+	// Initialize remaining components
+	if err := runtime.initializeElectionSystem(); err != nil {
+		return nil, fmt.Errorf("failed to initialize election system: %v", err)
+	}
+
+	if err := runtime.initializeDHTStorage(); err != nil {
+		return nil, fmt.Errorf("failed to initialize DHT storage: %v", err)
+	}
+
+	if err := runtime.initializeServices(); err != nil {
+		return nil, fmt.Errorf("failed to initialize services: %v", err)
+	}
+
+	return runtime, nil
+}
+
+// Cleanup properly shuts down all runtime components
+func (r *SharedRuntime) Cleanup() {
+	r.Logger.Info("🔄 Starting graceful shutdown...")
+
+	if r.BackbeatIntegration != nil {
+		r.BackbeatIntegration.Stop()
+	}
+
+	if r.MDNSDiscovery != nil {
+		r.MDNSDiscovery.Close()
+	}
+
+	if r.PubSub != nil {
+		r.PubSub.Close()
+	}
+
+	if r.DHTNode != nil {
+		r.DHTNode.Close()
+	}
+
+	if r.Node != nil {
+		r.Node.Close()
+	}
+
+	if r.HTTPServer != nil {
+		r.HTTPServer.Stop()
+	}
+
+	if r.UCXIServer != nil {
+		r.UCXIServer.Stop()
+	}
+
+	if r.ElectionManager != nil {
+		r.ElectionManager.Stop()
+	}
+
+	if r.Cancel != nil {
+		r.Cancel()
+	}
+
+	r.Logger.Info("✅ CHORUS shutdown completed")
+}
+
+// Helper methods for initialization (extracted from main.go)
+func (r *SharedRuntime) initializeElectionSystem() error {
+	// === Admin Election System ===
+	electionManager := election.NewElectionManager(r.Context, r.Config, r.Node.Host(), r.PubSub, r.Node.ID().ShortString())
+	
+	// Set election callbacks with BACKBEAT integration
+	electionManager.SetCallbacks(
+		func(oldAdmin, newAdmin string) {
+			r.Logger.Info("👑 Admin changed: %s -> %s", oldAdmin, newAdmin)
+			
+			// Track admin change with BACKBEAT if available
+			if r.BackbeatIntegration != nil {
+				operationID := fmt.Sprintf("admin-change-%d", time.Now().Unix())
+				if err := r.BackbeatIntegration.StartP2POperation(operationID, "admin_change", 2, map[string]interface{}{
+					"old_admin": oldAdmin,
+					"new_admin": newAdmin,
+				}); err == nil {
+					// Complete immediately as this is a state change, not a long operation
+					r.BackbeatIntegration.CompleteP2POperation(operationID, 1)
+				}
+			}
+			
+			// If this node becomes admin, enable SLURP functionality
+			if newAdmin == r.Node.ID().ShortString() {
+				r.Logger.Info("🎯 This node is now admin - enabling SLURP functionality")
+				r.Config.Slurp.Enabled = true
+				// Apply admin role configuration
+				if err := r.Config.ApplyRoleDefinition("admin"); err != nil {
+					r.Logger.Warn("⚠️ Failed to apply admin role: %v", err)
+				}
+			}
+		},
+		func(winner string) {
+			r.Logger.Info("🏆 Election completed, winner: %s", winner)
+			
+			// Track election completion with BACKBEAT if available
+			if r.BackbeatIntegration != nil {
+				operationID := fmt.Sprintf("election-completed-%d", time.Now().Unix())
+				if err := r.BackbeatIntegration.StartP2POperation(operationID, "election", 1, map[string]interface{}{
+					"winner": winner,
+					"node_id": r.Node.ID().ShortString(),
+				}); err == nil {
+					r.BackbeatIntegration.CompleteP2POperation(operationID, 1)
+				}
+			}
+		},
+	)
+	
+	if err := electionManager.Start(); err != nil {
+		return fmt.Errorf("failed to start election manager: %v", err)
+	}
+	r.ElectionManager = electionManager
+	r.Logger.Info("✅ Election manager started with automated heartbeat management")
+	
+	return nil
+}
+
+func (r *SharedRuntime) initializeDHTStorage() error {
+	// === DHT Storage and Decision Publishing ===
+	var dhtNode *dht.LibP2PDHT
+	var encryptedStorage *dht.EncryptedDHTStorage  
+	var decisionPublisher *ucxl.DecisionPublisher
+	
+	if r.Config.V2.DHT.Enabled {
+		// Create DHT
+		var err error
+		dhtNode, err = dht.NewLibP2PDHT(r.Context, r.Node.Host())
+		if err != nil {
+			r.Logger.Warn("⚠️ Failed to create DHT: %v", err)
+		} else {
+			r.Logger.Info("🕸️ DHT initialized")
+			
+			// Bootstrap DHT with BACKBEAT tracking
+			if r.BackbeatIntegration != nil {
+				operationID := fmt.Sprintf("dht-bootstrap-%d", time.Now().Unix())
+				if err := r.BackbeatIntegration.StartP2POperation(operationID, "dht_bootstrap", 4, nil); err == nil {
+					r.BackbeatIntegration.UpdateP2POperationPhase(operationID, backbeat.PhaseConnecting, 0)
+				}
+				
+				if err := dhtNode.Bootstrap(); err != nil {
+					r.Logger.Warn("⚠️ DHT bootstrap failed: %v", err)
+					r.BackbeatIntegration.FailP2POperation(operationID, err.Error())
+				} else {
+					r.BackbeatIntegration.CompleteP2POperation(operationID, 1)
+				}
+			} else {
+				if err := dhtNode.Bootstrap(); err != nil {
+					r.Logger.Warn("⚠️ DHT bootstrap failed: %v", err)
+				}
+			}
+			
+			// Connect to bootstrap peers if configured  
+			for _, addrStr := range r.Config.V2.DHT.BootstrapPeers {
+				addr, err := multiaddr.NewMultiaddr(addrStr)
+				if err != nil {
+					r.Logger.Warn("⚠️ Invalid bootstrap address %s: %v", addrStr, err)
+					continue
+				}
+				
+				// Extract peer info from multiaddr
+				info, err := peer.AddrInfoFromP2pAddr(addr)
+				if err != nil {
+					r.Logger.Warn("⚠️ Failed to parse peer info from %s: %v", addrStr, err)
+					continue
+				}
+				
+				// Track peer discovery with BACKBEAT if available
+				if r.BackbeatIntegration != nil {
+					operationID := fmt.Sprintf("peer-discovery-%d", time.Now().Unix())
+					if err := r.BackbeatIntegration.StartP2POperation(operationID, "peer_discovery", 2, map[string]interface{}{
+						"peer_addr": addrStr,
+					}); err == nil {
+						r.BackbeatIntegration.UpdateP2POperationPhase(operationID, backbeat.PhaseConnecting, 0)
+						
+						if err := r.Node.Host().Connect(r.Context, *info); err != nil {
+							r.Logger.Warn("⚠️ Failed to connect to bootstrap peer %s: %v", addrStr, err)
+							r.BackbeatIntegration.FailP2POperation(operationID, err.Error())
+						} else {
+							r.Logger.Info("🔗 Connected to DHT bootstrap peer: %s", addrStr)
+							r.BackbeatIntegration.CompleteP2POperation(operationID, 1)
+						}
+					}
+				} else {
+					if err := r.Node.Host().Connect(r.Context, *info); err != nil {
+						r.Logger.Warn("⚠️ Failed to connect to bootstrap peer %s: %v", addrStr, err)
+					} else {
+						r.Logger.Info("🔗 Connected to DHT bootstrap peer: %s", addrStr)
+					}
+				}
+			}
+			
+			// Initialize encrypted storage
+			encryptedStorage = dht.NewEncryptedDHTStorage(
+				r.Context,
+				r.Node.Host(), 
+				dhtNode,
+				r.Config,
+				r.Node.ID().ShortString(),
+			)
+			
+			// Start cache cleanup
+			encryptedStorage.StartCacheCleanup(5 * time.Minute)
+			r.Logger.Info("🔐 Encrypted DHT storage initialized")
+			
+			// Initialize decision publisher
+			decisionPublisher = ucxl.NewDecisionPublisher(
+				r.Context,
+				r.Config,
+				encryptedStorage,
+				r.Node.ID().ShortString(),
+				r.Config.Agent.ID,
+			)
+			r.Logger.Info("📤 Decision publisher initialized")
+		}
+	} else {
+		r.Logger.Info("⚪ DHT disabled in configuration")
+	}
+
+	r.DHTNode = dhtNode
+	r.EncryptedStorage = encryptedStorage
+	r.DecisionPublisher = decisionPublisher
+	
+	return nil
+}
+
+func (r *SharedRuntime) initializeServices() error {
+	// === Task Coordination Integration ===
+	taskCoordinator := coordinator.NewTaskCoordinator(
+		r.Context,
+		r.PubSub,
+		r.HypercoreLog,
+		r.Config,
+		r.Node.ID().ShortString(),
+		nil, // HMMM router placeholder
+	)
+	
+	taskCoordinator.Start()
+	r.TaskCoordinator = taskCoordinator
+	r.Logger.Info("✅ Task coordination system active")
+
+	// Start HTTP API server
+	httpServer := api.NewHTTPServer(r.Config.Network.APIPort, r.HypercoreLog, r.PubSub)
+	go func() {
+		r.Logger.Info("🌐 HTTP API server starting on :%d", r.Config.Network.APIPort)
+		if err := httpServer.Start(); err != nil && err != http.ErrServerClosed {
+			r.Logger.Error("❌ HTTP server error: %v", err)
+		}
+	}()
+	r.HTTPServer = httpServer
+
+	// === UCXI Server Integration ===
+	var ucxiServer *ucxi.Server
+	if r.Config.UCXL.Enabled && r.Config.UCXL.Server.Enabled {
+		storageDir := r.Config.UCXL.Storage.Directory
+		if storageDir == "" {
+			storageDir = filepath.Join(os.TempDir(), "chorus-ucxi-storage")
+		}
+		
+		storage, err := ucxi.NewBasicContentStorage(storageDir)
+		if err != nil {
+			r.Logger.Warn("⚠️ Failed to create UCXI storage: %v", err)
+		} else {
+			resolver := ucxi.NewBasicAddressResolver(r.Node.ID().ShortString())
+			resolver.SetDefaultTTL(r.Config.UCXL.Resolution.CacheTTL)
+			
+			ucxiConfig := ucxi.ServerConfig{
+				Port:     r.Config.UCXL.Server.Port,
+				BasePath: r.Config.UCXL.Server.BasePath,
+				Resolver: resolver,
+				Storage:  storage,
+				Logger:   ucxi.SimpleLogger{},
+			}
+			
+			ucxiServer = ucxi.NewServer(ucxiConfig)
+			go func() {
+				r.Logger.Info("🔗 UCXI server starting on :%d", r.Config.UCXL.Server.Port)
+				if err := ucxiServer.Start(); err != nil && err != http.ErrServerClosed {
+					r.Logger.Error("❌ UCXI server error: %v", err)
+				}
+			}()
+		}
+	} else {
+		r.Logger.Info("⚪ UCXI server disabled")
+	}
+	r.UCXIServer = ucxiServer
+
+	// Create simple task tracker
+	taskTracker := &SimpleTaskTracker{
+		maxTasks:    r.Config.Agent.MaxTasks,
+		activeTasks: make(map[string]bool),
+	}
+	
+	// Connect decision publisher to task tracker if available
+	if r.DecisionPublisher != nil {
+		taskTracker.decisionPublisher = r.DecisionPublisher
+		r.Logger.Info("📤 Task completion decisions will be published to DHT")
+	}
+	r.TaskTracker = taskTracker
+
+	return nil
+}
+
+// initializeAIProvider configures the reasoning engine with the appropriate AI provider
+func initializeAIProvider(cfg *config.Config, logger *SimpleLogger) error {
+	// Set the AI provider
+	reasoning.SetAIProvider(cfg.AI.Provider)
+	
+	// Configure the selected provider
+	switch cfg.AI.Provider {
+	case "resetdata":
+		if cfg.AI.ResetData.APIKey == "" {
+			return fmt.Errorf("RESETDATA_API_KEY environment variable is required for resetdata provider")
+		}
+		
+		resetdataConfig := reasoning.ResetDataConfig{
+			BaseURL: cfg.AI.ResetData.BaseURL,
+			APIKey:  cfg.AI.ResetData.APIKey,
+			Model:   cfg.AI.ResetData.Model,
+			Timeout: cfg.AI.ResetData.Timeout,
+		}
+		reasoning.SetResetDataConfig(resetdataConfig)
+		logger.Info("🌐 ResetData AI provider configured - Endpoint: %s, Model: %s", 
+			cfg.AI.ResetData.BaseURL, cfg.AI.ResetData.Model)
+		
+	case "ollama":
+		reasoning.SetOllamaEndpoint(cfg.AI.Ollama.Endpoint)
+		logger.Info("🦙 Ollama AI provider configured - Endpoint: %s", cfg.AI.Ollama.Endpoint)
+		
+	default:
+		logger.Warn("⚠️ Unknown AI provider '%s', defaulting to resetdata", cfg.AI.Provider)
+		if cfg.AI.ResetData.APIKey == "" {
+			return fmt.Errorf("RESETDATA_API_KEY environment variable is required for default resetdata provider")
+		}
+		
+		resetdataConfig := reasoning.ResetDataConfig{
+			BaseURL: cfg.AI.ResetData.BaseURL,
+			APIKey:  cfg.AI.ResetData.APIKey,
+			Model:   cfg.AI.ResetData.Model,
+			Timeout: cfg.AI.ResetData.Timeout,
+		}
+		reasoning.SetResetDataConfig(resetdataConfig)
+		reasoning.SetAIProvider("resetdata")
+	}
+	
+	// Configure model selection
+	reasoning.SetModelConfig(
+		cfg.Agent.Models,
+		cfg.Agent.ModelSelectionWebhook,
+		cfg.Agent.DefaultReasoningModel,
+	)
+
+	// Initialize prompt sources (roles + default instructions) from Docker-mounted directory
+	promptsDir := os.Getenv("CHORUS_PROMPTS_DIR")
+	defaultInstrPath := os.Getenv("CHORUS_DEFAULT_INSTRUCTIONS_PATH")
+	_ = prompt.Initialize(promptsDir, defaultInstrPath)
+
+	// Compose S + D for the agent role if available; otherwise use D only
+	if cfg.Agent.Role != "" {
+		if composed, err := prompt.ComposeSystemPrompt(cfg.Agent.Role); err == nil && strings.TrimSpace(composed) != "" {
+			reasoning.SetDefaultSystemPrompt(composed)
+		} else if d := prompt.GetDefaultInstructions(); strings.TrimSpace(d) != "" {
+			reasoning.SetDefaultSystemPrompt(d)
+		}
+	} else if d := prompt.GetDefaultInstructions(); strings.TrimSpace(d) != "" {
+		reasoning.SetDefaultSystemPrompt(d)
+	}
+
+	return nil
+}
diff --git a/pkg/prompt/loader.go b/pkg/prompt/loader.go
new file mode 100644
index 0000000..5f4eed7
--- /dev/null
+++ b/pkg/prompt/loader.go
@@ -0,0 +1,114 @@
+package prompt
+
+import (
+    "errors"
+    "io/fs"
+    "os"
+    "path/filepath"
+    "strings"
+
+    "gopkg.in/yaml.v3"
+)
+
+var (
+    loadedRoles   map[string]RoleDefinition
+    defaultInstr  string
+)
+
+// Initialize loads roles and default instructions from the configured directory.
+// dir: base directory (e.g., /etc/chorus/prompts)
+// defaultPath: optional explicit path to defaults file; if empty, will look for defaults.md or defaults.txt in dir.
+func Initialize(dir string, defaultPath string) error {
+    loadedRoles = make(map[string]RoleDefinition)
+
+    // Load roles from all YAML files under dir
+    if dir != "" {
+        _ = filepath.WalkDir(dir, func(path string, d fs.DirEntry, err error) error {
+            if err != nil || d == nil || d.IsDir() {
+                return nil
+            }
+            name := d.Name()
+            if strings.HasSuffix(name, ".yaml") || strings.HasSuffix(name, ".yml") {
+                _ = loadRolesFile(path)
+            }
+            return nil
+        })
+    }
+
+    // Load default instructions
+    if defaultPath == "" && dir != "" {
+        // Try defaults.md then defaults.txt in the directory
+        tryPaths := []string{
+            filepath.Join(dir, "defaults.md"),
+            filepath.Join(dir, "defaults.txt"),
+        }
+        for _, p := range tryPaths {
+            if b, err := os.ReadFile(p); err == nil {
+                defaultInstr = string(b)
+                break
+            }
+        }
+    } else if defaultPath != "" {
+        if b, err := os.ReadFile(defaultPath); err == nil {
+            defaultInstr = string(b)
+        }
+    }
+    return nil
+}
+
+func loadRolesFile(path string) error {
+    data, err := os.ReadFile(path)
+    if err != nil {
+        return err
+    }
+    var rf RolesFile
+    if err := yaml.Unmarshal(data, &rf); err != nil {
+        return err
+    }
+    for id, def := range rf.Roles {
+        def.ID = id
+        loadedRoles[id] = def
+    }
+    return nil
+}
+
+// GetRole returns the role definition by ID if loaded.
+func GetRole(id string) (RoleDefinition, bool) {
+    r, ok := loadedRoles[id]
+    return r, ok
+}
+
+// ListRoles returns IDs of loaded roles.
+func ListRoles() []string {
+    ids := make([]string, 0, len(loadedRoles))
+    for id := range loadedRoles {
+        ids = append(ids, id)
+    }
+    return ids
+}
+
+// GetDefaultInstructions returns the loaded default instructions (may be empty if not present on disk).
+func GetDefaultInstructions() string {
+    return defaultInstr
+}
+
+// ComposeSystemPrompt concatenates the role system prompt (S) with default instructions (D).
+func ComposeSystemPrompt(roleID string) (string, error) {
+    r, ok := GetRole(roleID)
+    if !ok {
+        return "", errors.New("role not found: " + roleID)
+    }
+    s := strings.TrimSpace(r.SystemPrompt)
+    d := strings.TrimSpace(defaultInstr)
+    switch {
+    case s != "" && d != "":
+        return s + "\n\n" + d, nil
+    case s != "":
+        return s, nil
+    case d != "":
+        return d, nil
+    default:
+        return "", nil
+    }
+}
+
diff --git a/pkg/prompt/types.go b/pkg/prompt/types.go
new file mode 100644
index 0000000..222d5c5
--- /dev/null
+++ b/pkg/prompt/types.go
@@ -0,0 +1,22 @@
+package prompt
+
+// RoleDefinition represents a single agent role loaded from YAML.
+type RoleDefinition struct {
+    ID          string   `yaml:"id"`
+    Name        string   `yaml:"name"`
+    Description string   `yaml:"description"`
+    Tags        []string `yaml:"tags"`
+    SystemPrompt string  `yaml:"system_prompt"`
+    Defaults    struct {
+        Models       []string `yaml:"models"`
+        Capabilities []string `yaml:"capabilities"`
+        Expertise    []string `yaml:"expertise"`
+        MaxTasks     int      `yaml:"max_tasks"`
+    } `yaml:"defaults"`
+}
+
+// RolesFile is the top-level structure for a roles YAML file.
+type RolesFile struct {
+    Roles map[string]RoleDefinition `yaml:"roles"`
+}
+
diff --git a/prompts/defaults.md b/prompts/defaults.md
new file mode 100644
index 0000000..860b4cd
--- /dev/null
+++ b/prompts/defaults.md
@@ -0,0 +1,103 @@
+Default Instructions (D)
+
+Operating Policy
+- Be precise, verifiable, and do not fabricate. Surface uncertainties.
+- Prefer minimal, auditable changes; record decisions in UCXL.
+- Preserve API compatibility, data safety, and security constraints. Escalate when blocked.
+- Include UCXL citations for any external facts or prior decisions.
+
+When To Use Subsystems
+- HMMM (collaborative reasoning): Cross-agent clarification, planning critique, consensus seeking, or targeted questions to unblock progress. Publish on `hmmm/meta-discussion/v1`.
+- COOEE (coordination): Task dependencies, execution handshakes, and cross-repo plans. Publish on `CHORUS/coordination/v1`.
+- UCXL (context): Read decisions/specs/plans by UCXL address. Write new decisions and evidence using the decision bundle envelope. Never invent UCXL paths.
+- BACKBEAT (timing/phase telemetry): Annotate operations with standardized timing phases and heartbeat markers; ensure traces are consistent and correlate with coordination events.
+
+HMMM: Message (publish → hmmm/meta-discussion/v1)
+{
+  "type": "hmmm.message",
+  "session_id": "<string>",
+  "from": {"agent_id": "<string>", "role": "<string>"},
+  "message": "<plain text>",
+  "intent": "proposal|question|answer|update|escalation",
+  "citations": [{"ucxl.address": "<ucxl://...>", "reason": "<string>"}],
+  "timestamp": "<RFC3339>"
+}
+
+COOEE: Coordination Request (publish → CHORUS/coordination/v1)
+{
+  "type": "cooee.request",
+  "dependency": {
+    "task1": {"repo": "<owner/name>", "id": "<id>", "agent_id": "<string>"},
+    "task2": {"repo": "<owner/name>", "id": "<id>", "agent_id": "<string>"},
+    "relationship": "blocks|duplicates|relates-to|requires",
+    "reason": "<string>"
+  },
+  "objective": "<what success looks like>",
+  "constraints": ["<time>", "<compliance>", "<perf>", "..."],
+  "deadline": "<RFC3339|optional>",
+  "citations": [{"ucxl.address": "<ucxl://...>"}],
+  "timestamp": "<RFC3339>"
+}
+
+COOEE: Coordination Plan (publish → CHORUS/coordination/v1)
+{
+  "type": "cooee.plan",
+  "session_id": "<string>",
+  "participants": {"<agent_id>": {"role": "<string>"}},
+  "steps": [{"id":"S1","owner":"<agent_id>","desc":"<action>","deps":["S0"],"done":false}],
+  "risks": [{"id":"R1","desc":"<risk>","mitigation":"<mitigate>"}],
+  "success_criteria": ["<criteria-1>", "<criteria-2>"],
+  "citations": [{"ucxl.address": "<ucxl://...>"}],
+  "timestamp": "<RFC3339>"
+}
+
+UCXL: Decision Bundle (persist → UCXL)
+{
+  "ucxl.address": "ucxl://<agent-id>:<role>@<project>:<task>/#/<path>",
+  "version": "<RFC3339>",
+  "content_type": "application/vnd.chorus.decision+json",
+  "hash": "sha256:<hex>",
+  "metadata": {
+    "classification": "internal|public|restricted",
+    "roles": ["<role-1>", "<role-2>"],
+    "tags": ["decision","coordination","review"]
+  },
+  "task": "<what is being decided>",
+  "options": [
+    {"name":"<A>","plan":"<steps>","risks":"<risks>"},
+    {"name":"<B>","plan":"<steps>","risks":"<risks>"}
+  ],
+  "choice": "<A|B|...>",
+  "rationale": "<why>",
+  "citations": [{"ucxl.address":"<ucxl://...>"}]
+}
+
+BACKBEAT: Usage & Standards
+- Purpose: Provide beat-aware timing, phase tracking, and correlation for distributed operations.
+- Phases: Define and emit consistent phases (e.g., "prepare", "plan", "exec", "verify", "publish").
+- Events: At minimum emit `start`, `heartbeat`, and `complete` for each operation with the same correlation ID.
+- Correlation: Include `team_id`, `session_id`, `operation_id`, and link to COOEE/HMMM message IDs when present.
+- Latency budget: Attach `budget_ms` when available; warn if over budget.
+- Error handling: On failure, emit `complete` with `status":"error"`, a concise `reason`, and UCXL decision/citation if escalated.
+- Minimal JSON envelope for a beat:
+{
+  "type": "backbeat.event",
+  "operation_id": "<uuid>",
+  "phase": "prepare|plan|exec|verify|publish",
+  "event": "start|heartbeat|complete",
+  "status": "ok|error",
+  "team_id": "<string>",
+  "session_id": "<string>",
+  "cooee_id": "<message-id|optional>",
+  "hmmm_id": "<message-id|optional>",
+  "budget_ms": <int|optional>,
+  "elapsed_ms": <int|optional>,
+  "details": {"key": "value"},
+  "timestamp": "<RFC3339>"
+}
+
+Composition
+- Final system prompt = S (role/system persona) + two newlines + this D.
+- Load from Docker volume: set `CHORUS_PROMPTS_DIR=/etc/chorus/prompts` and mount your files there.
+- Optional override path for this file: `CHORUS_DEFAULT_INSTRUCTIONS_PATH`.
+
diff --git a/prompts/roles.yaml b/prompts/roles.yaml
new file mode 100644
index 0000000..0f2cb75
--- /dev/null
+++ b/prompts/roles.yaml
@@ -0,0 +1,28 @@
+roles:
+  arbiter:
+    name: "Arbiter"
+    description: "Coordination lead for cross-agent planning and consensus."
+    tags: [coordination, planning]
+    system_prompt: |
+      You are Arbiter, a precise coordination lead for distributed engineering teams.
+      Facilitate efficient cross-agent planning, detect dependencies, and drive consensus.
+      Optimize for clarity, verifiability, and minimal, auditable change sets.
+    defaults:
+      models: ["meta/llama-3.1-8b-instruct"]
+      capabilities: ["coordination","planning","dependency-analysis"]
+      expertise: []
+      max_tasks: 3
+
+  hmmm-analyst:
+    name: "HMMM Analyst"
+    description: "Analytical agent specializing in collaborative reasoning workflows."
+    tags: [reasoning, analysis]
+    system_prompt: |
+      You are an analytical agent focused on clear, testable reasoning and critique.
+      Identify assumptions, propose checkpoints, and seek consensus via HMMM when useful.
+    defaults:
+      models: ["meta/llama-3.1-8b-instruct"]
+      capabilities: ["reasoning","critique","explanation"]
+      expertise: []
+      max_tasks: 2
+
diff --git a/reasoning/reasoning.go b/reasoning/reasoning.go
index 33cb82e..d4d979d 100644
--- a/reasoning/reasoning.go
+++ b/reasoning/reasoning.go
@@ -16,12 +16,13 @@ const (
 )
 
 var (
-	availableModels []string
-	modelWebhookURL string
-	defaultModel    string
-	ollamaEndpoint  string = "http://localhost:11434" // Default fallback
-	aiProvider      string = "resetdata"              // Default provider
-	resetdataConfig ResetDataConfig
+    availableModels []string
+    modelWebhookURL string
+    defaultModel    string
+    ollamaEndpoint  string = "http://localhost:11434" // Default fallback
+    aiProvider      string = "resetdata"              // Default provider
+    resetdataConfig ResetDataConfig
+    defaultSystemPrompt string
 )
 
 // AIProvider represents the AI service provider
@@ -118,17 +119,17 @@ func generateResetDataResponse(ctx context.Context, model, prompt string) (strin
 	}
 
 	// Create the request payload in OpenAI format
-	requestPayload := OpenAIRequest{
-		Model: modelToUse,
-		Messages: []OpenAIMessage{
-			{Role: "system", Content: "You are a helpful assistant."},
-			{Role: "user", Content: prompt},
-		},
-		Temperature: 0.2,
-		TopP:        0.7,
-		MaxTokens:   1024,
-		Stream:      false,
-	}
+    requestPayload := OpenAIRequest{
+        Model: modelToUse,
+        Messages: []OpenAIMessage{
+            {Role: "system", Content: defaultSystemPromptOrFallback()},
+            {Role: "user", Content: prompt},
+        },
+        Temperature: 0.2,
+        TopP:        0.7,
+        MaxTokens:   1024,
+        Stream:      false,
+    }
 
 	payloadBytes, err := json.Marshal(requestPayload)
 	if err != nil {
@@ -233,7 +234,12 @@ func SetResetDataConfig(config ResetDataConfig) {
 
 // SetOllamaEndpoint configures the Ollama API endpoint
 func SetOllamaEndpoint(endpoint string) {
-	ollamaEndpoint = endpoint
+    ollamaEndpoint = endpoint
+}
+
+// SetDefaultSystemPrompt configures the default system message used when building prompts.
+func SetDefaultSystemPrompt(systemPrompt string) {
+    defaultSystemPrompt = systemPrompt
 }
 
 // selectBestModel calls the model selection webhook to choose the best model for a prompt
@@ -291,6 +297,13 @@ func selectBestModel(availableModels []string, prompt string) string {
 
 // GenerateResponseSmart automatically selects the best model for the prompt
 func GenerateResponseSmart(ctx context.Context, prompt string) (string, error) {
-	selectedModel := selectBestModel(availableModels, prompt)
-	return GenerateResponse(ctx, selectedModel, prompt)
+    selectedModel := selectBestModel(availableModels, prompt)
+    return GenerateResponse(ctx, selectedModel, prompt)
+}
+
+func defaultSystemPromptOrFallback() string {
+    if strings.TrimSpace(defaultSystemPrompt) != "" {
+        return defaultSystemPrompt
+    }
+    return "You are a helpful assistant."
 }