diff --git a/openai/docker-compose.yml b/openai/docker-compose.yml
index 7a3e03e..56eb0c7 100644
--- a/openai/docker-compose.yml
+++ b/openai/docker-compose.yml
@@ -304,17 +304,21 @@ services:
     container_name: hindsight
     restart: unless-stopped
     environment:
+      # ALL stages on the local model (alvis, 2026-07-26): retain/extraction
+      # moved OFF Kimi (hindsight-llm:8012) onto ollama/gemma3:4b via LiteLLM,
+      # joining consolidation + reflect which were already local. Kimi is no
+      # longer in the Hindsight path at all, so the memory backend costs zero
+      # quota and Adolf's 5h window is left entirely for conversation.
+      #
+      # ⚠️ Accepted tradeoff: the kb#88/kb#84 rationale for keeping retain on
+      # Kimi was fact QUALITY — gemma3:4b's Russian fluency was never verified
+      # (it was originally picked only to dodge qwen3:8b's <think>-token bug),
+      # and this bank's content is largely Russian. Watch extraction quality on
+      # the next retains; if facts degrade, this is the first thing to revert.
       - HINDSIGHT_API_LLM_PROVIDER=openai
-      - HINDSIGHT_API_LLM_BASE_URL=http://hindsight-llm:8012/v1
-      - HINDSIGHT_API_LLM_MODEL=openai/hindsight-llm
-      # hindsight-llm ignores the key entirely (Kimi CLI wrapper, no real
-      # OpenAI auth) — dummy value, non-empty so the client constructs.
-      - HINDSIGHT_API_LLM_API_KEY=sk-hindsight-llm-local
-      # Per-stage LLM routing (kb#88): the heavy BACKGROUND stages —
-      # consolidation (~930 calls/3h) + reflect/mental-models (~177/3h) —
-      # were burning the Kimi 5h window (hit 100%). Route them to a cheap
-      # LOCAL model via LiteLLM/ollama (GPU, free); RETAIN extraction inherits
-      # the main HINDSIGHT_API_LLM_* above (Kimi) to keep fact quality.
+      - HINDSIGHT_API_LLM_BASE_URL=http://litellm:4000/v1
+      - HINDSIGHT_API_LLM_MODEL=ollama/gemma3:4b
+      - HINDSIGHT_API_LLM_API_KEY=sk-fjQC1BxAiGFSMs
       - HINDSIGHT_API_CONSOLIDATION_LLM_PROVIDER=openai
       - HINDSIGHT_API_CONSOLIDATION_LLM_BASE_URL=http://litellm:4000/v1
       - HINDSIGHT_API_CONSOLIDATION_LLM_MODEL=ollama/gemma3:4b