diff --git a/docs/ARCHITECTURE.md b/docs/ARCHITECTURE.md
index 138b1b5..8bc6062 100644
--- a/docs/ARCHITECTURE.md
+++ b/docs/ARCHITECTURE.md
@@ -18,7 +18,7 @@ When the Agents reply to you in the terminal, it means your computer's local CPU
 
 ## User settings (optional)
 
-> **Full reference:** YAML keys, search paths, `.env`, and preflight are documented in [SETTINGS.md](SETTINGS.md).
+> **Full reference:** YAML keys, search paths, `.env`, and preflight are documented in [SETTINGS.md](SETTINGS.md). For configuration precedence, see [Global defaults vs per-agent overrides](SETTINGS.md#global-defaults-vs-per-agent-overrides).
 
 Default model strings, timeouts, user profile, and optional persona overrides are loaded from YAML at CLI startup (`rooms/settings.py`). **No file is required** — if `rooms.settings.yaml` is missing, built-in defaults apply (same values as `rooms.settings.example.yaml`).
 
diff --git a/docs/EXAMPLES.md b/docs/EXAMPLES.md
index 27a6ca0..d24d9ab 100644
--- a/docs/EXAMPLES.md
+++ b/docs/EXAMPLES.md
@@ -19,6 +19,8 @@ The Multi-Agent Rooms framework is extremely versatile. This guide covers practi
 | `system_prompt` | Agent identity and role | The more vivid and specific, the more coherent the agent |
 | `rooms.settings.yaml` | Local defaults (optional) | Copy from `rooms.settings.example.yaml` or run `python cli.py config init`; set `defaults.litellm_model` to your Ollama tag |
 
+For the precedence of YAML defaults, persona fields, and session-only wizard choices, see [Global defaults vs per-agent overrides](SETTINGS.md#global-defaults-vs-per-agent-overrides).
+
 **Session Type Guide:**
 
 | Type | Best For |
diff --git a/docs/README.md b/docs/README.md
index 312e6ee..993127e 100644
--- a/docs/README.md
+++ b/docs/README.md
@@ -28,7 +28,7 @@ Welcome to the Rooms documentation hub. Start here to find the right guide by au
 
 ## Related issues
 
-- **Settings key semantics and override rules** are tracked separately from this hub; see the settings reference in [SETTINGS.md](SETTINGS.md) and `rooms.settings.example.yaml`.
+- **Settings key semantics and override rules** are documented in [Global defaults vs per-agent overrides](SETTINGS.md#global-defaults-vs-per-agent-overrides); use `rooms.settings.example.yaml` as the complete template.
 - **This hub** focuses on navigation and discoverability so architecture, examples, and configuration are easy to find in one place.
 
 ## Install paths
diff --git a/docs/SETTINGS.md b/docs/SETTINGS.md
index d01042c..2b4a85d 100644
--- a/docs/SETTINGS.md
+++ b/docs/SETTINGS.md
@@ -41,6 +41,23 @@ python cli.py --config path/to/settings.yaml
 
 ---
 
+## Global defaults vs per-agent overrides
+
+The `defaults` block supplies values to the shipped personas, custom personas that omit the corresponding field, and the orchestrator where noted below. The wizard starts with those resolved values, but choices made there apply only to the current session; it does not write them back to `rooms.settings.yaml`.
+
+| YAML key | Used by default for | How it can be overridden |
+|----------|---------------------|--------------------------|
+| `defaults.litellm_model` | Shipped personas and custom personas with no `model` | A custom persona's `model`, or the custom-agent wizard's model prompt, for that agent only |
+| `defaults.timeout` | Shipped personas, custom personas, and the orchestrator | A programmatically constructed `AgentConfig` can set a per-agent value; the current YAML persona schema and wizard do not expose a timeout override |
+| `defaults.temperature` | Shipped personas and custom personas with no `temperature` | A custom persona's `temperature`, or the wizard's per-agent temperature prompt, for that session |
+| `defaults.orchestrator_model` | The orchestrator; falls back to `defaults.litellm_model` when omitted | The wizard's **Orchestrator Model** prompt, for that session |
+
+The orchestrator uses `defaults.timeout`, but currently uses a fixed temperature of `0.3` rather than `defaults.temperature`.
+
+To create a persistent local settings file, run `python cli.py config init`, then edit the generated file using [`rooms.settings.example.yaml`](../rooms.settings.example.yaml) as the reference. If no settings file is found, Rooms uses its built-in defaults; see [Settings search order](#settings-search-order).
+
+---
+
 ## YAML key reference
 
 Top-level keys in `rooms.settings.yaml`:
@@ -103,7 +120,7 @@ Override or replace shipped personas entirely when `use_shipped_personas: false`
 | `skills` | list[string] | no | Skillware skill IDs (e.g. `finance/wallet_screening`) |
 | `skill_settings` | object | no | Per-skill override map (`skill_id` → `{key: value}`) |
 
-**Override rule:** Persona-level `model` / `temperature` / `timeout` win over `defaults` for that agent only. Session wizard choices can still override per run.
+**Override rule:** Persona-level `model` and `temperature` win over `defaults` for that agent only. Persona timeout is not currently configurable in YAML. Session wizard choices apply only to that run.
 
 ---