diff --git a/CLAUDE.md b/CLAUDE.md
index 94b4ac7..f4e585c 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -9,23 +9,27 @@ and agent composition.
 
 | | |
 |---|---|
-| **Phase** | Phase 1 complete, Phase 2 next |
+| **Phase** | Phases 0–2.5 complete; V1 shipped. Next: Phase 3 (stress testing) or Phase 5 (arxiv-rag) |
 | **Last worked on** | 2026-04-08 |
-| **Last commit** | `7088f45` — Merge PR #7: M1.4 MCP server |
+| **Last commit** | `af79358` — Merge PR #36: per-step durations in trace and operational logs |
 | **Branch** | `main` (clean) |
-| **Tests** | 81 passing |
+| **Tests** | 123 passing |
 | **Blocking issues** | None |
 
 ## Key Files
 
 | File | Purpose |
 |---|---|
-| `researchers/web/models.py` | Research Contract v1 Pydantic models (9 types) |
+| `researchers/web/models.py` | Research Contract v1 Pydantic models + `DEPTH_PRESETS` |
 | `researchers/web/tools.py` | Tavily search + URL fetch with content hashing |
-| `researchers/web/trace.py` | JSONL trace logger |
+| `researchers/web/trace.py` | JSONL trace logger + step-duration tracking + structlog mirror |
 | `researchers/web/agent.py` | WebResearcher — inner agentic loop |
 | `researchers/web/server.py` | FastMCP server wrapping the researcher |
-| `cli/main.py` | CLI shim (not yet implemented) |
+| `cli/main.py` | CLI: `ask` / `replay` / `costs` |
+| `obs/__init__.py` | Structured operational logger (structlog) |
+| `obs/costs.py` | Cost ledger + price table |
+| `Makefile` | `make install` / `test` / `ask` / `costs` / `clean` |
+| `Dockerfile` + `scripts/docker-test.sh` | Reproducible test environment |
 
 ## Architecture
 
@@ -47,10 +51,13 @@ and agent composition.
 | Session | Date | Summary |
 |---|---|---|
 | 1 | 2026-04-08 | Project creation, naming, contract design, Phase 0 + Phase 1 complete (81 tests) |
+| 2 | 2026-04-08 | Phase 2 (CLI shim) + Phase 2.5 (logging + cost tracking) shipped; V1 ships; depth presets; docker test env; per-step duration tracking; arxiv-rag scoped as M5.1; Phase 3/4/5/6 milestones populated (123 tests) |
 
 ## What's Next
 
-**Phase 2: CLI Shim**
-1. M2.1 — `marchwarden ask "question"` command (Click CLI, pretty-print)
-2. M2.2 — `marchwarden replay <trace_id>` command
-3. M2.3 — First smoke test: "What are ideal crops for a garden in Utah?"
+**Recommended next session: Phase 3 (Stress Testing & Calibration)** before Phase 5, since stress tests will likely tighten the contract before a second researcher has to implement it.
+
+- **Phase 3:** Issue #44 (M3.1 single-axis stress tests) → #45 (M3.2 multi-axis) → #46 (M3.3 confidence calibration)
+- **Phase 5 alternative:** Issue #38 (M5.1.1 arxiv-rag ingest pipeline). New deps: pymupdf, chromadb, sentence-transformers, arxiv. Design lives at [wiki/ArxivRagProposal](https://forgejo.labbity.unbiasedgeek.com/archeious/marchwarden/wiki/ArxivRagProposal).
+
+Open milestones in Forgejo: Phase 3 (3 issues), Phase 4 (3 issues), Phase 5 (8 issues including arxiv-rag tracker), Phase 6 (2 issues).