diff --git a/README.md b/README.md
index fd56cae..ae92048 100644
--- a/README.md
+++ b/README.md
@@ -34,8 +34,6 @@ OLLIE_ANTHROPIC_KEY=sk-ant-...
 OLLIE_COPILOT_TOKEN=...
 OLLIE_KIRO_TOKEN=...           # bearer token or sqlite:// path (auto-detected from Kiro CLI if unset)
 OLLIE_MODEL=qwen/qwen3-235b-a22b
-OLLIE_TOOLS_PATH=~/.config/ollie/tools    # directory for tool executables + .meta files
-OLLIE_MEMORY_PATH=~/.config/ollie/memory  # directory for memory files
 OLLIE_ELEVATE_SOCKET=${XDG_RUNTIME_DIR}/ollie/elevate.sock
 OLLIE_COMPLETE_BACKEND=ollama             # backend for code completion
 OLLIE_COMPLETE_MODEL=qwen3:latest         # model for code completion
@@ -44,7 +42,7 @@ OLLIE_ROUTE_BACKEND=ollama               # backend for the /route classifier
 OLLIE_ROUTE_MODEL=qwen3:8b               # model for task routing
 ```
 
-Shell environment variables take precedence over the env file.
+Everything lives under `~/.config/ollie/` by convention — tools in `tools/`, memory in `memory/`, agents in `agents/`, prompts in `prompts/`, skills in `skills/`. Shell environment variables take precedence over the env file.
 
 ## What you can do
 
@@ -58,7 +56,7 @@ Shell environment variables take precedence over the env file.
 | **Run an agent** | Create a session + agent via 9P — then connect with any frontend ([ellie](doc/ellie.md), KDE (GUI/KRunner/Kate), `o tui`) |
 | **Remote execution** | Set `remote=user@host` in session config |
 | **Agents** | Write a JSON config in `data/agents/` with agent prompt in `data/prompts/` |
-| **Tools** | Drop an executable + `.meta` in `$OLLIE_TOOLS_PATH` — then load at runtime via `tool_load` |
+| **Tools** | Drop an executable + `.meta` in `~/.config/ollie/tools/` — then load at runtime via `tool_load` |
 | **Domain skills** | Load markdown skill modules at runtime |
 
 ## Repository layout