diff --git a/src/atocore/context/builder.py b/src/atocore/context/builder.py
index 5af0364..c217d06 100644
--- a/src/atocore/context/builder.py
+++ b/src/atocore/context/builder.py
@@ -29,7 +29,7 @@ SYSTEM_PREFIX = (
 # Budget allocation (per Master Plan section 9):
 #   identity: 5%, preferences: 5%, project state: 20%, retrieval: 60%+
 PROJECT_STATE_BUDGET_RATIO = 0.20
-MEMORY_BUDGET_RATIO = 0.10  # 5% identity + 5% preference
+MEMORY_BUDGET_RATIO = 0.05  # identity + preference; lowered from 0.10 to avoid squeezing project memories and chunks
 # Project-scoped memories (project/knowledge/episodic) are the outlet
 # for the Phase 9 reflection loop on the retrieval side. Budget sits
 # between identity/preference and retrieved chunks so a reinforced