diff --git a/.claude-plugin/marketplace.json b/.claude-plugin/marketplace.json
index 679aa87..c39dfce 100644
--- a/.claude-plugin/marketplace.json
+++ b/.claude-plugin/marketplace.json
@@ -11,8 +11,8 @@
     {
       "name": "memmesh",
       "source": "./integrations/memmesh-plugin",
-      "description": "MemMesh — a memory + calibrated-prediction + behavior-discovery engine for AI apps. Persistent hierarchical memory, a bi-temporal knowledge graph, and forward predictions with provenance and abstention. The engine decides what to save; your agent's own model does any extraction (zero engine-side LLM cost).",
-      "version": "0.1.0"
+      "description": "MemMesh — persistent, local-first memory for AI agents. Bi-temporal knowledge graph, typed/scoped recall, and local↔server sync, over MCP; runs from one binary on SQLite with no mandatory LLM calls (your agent's own model does any extraction). Calibrated prediction & behavior discovery available in hosted mode.",
+      "version": "0.1.1"
     }
   ]
 }
diff --git a/Cargo.lock b/Cargo.lock
index 2366ad5..87bb811 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2065,7 +2065,7 @@ checksum = "88904434abc2901f197fe8cc55f0445e7ded921dba5911dad2e2b39b48e663c4"
 
 [[package]]
 name = "memory-audit"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -2080,7 +2080,7 @@ dependencies = [
 
 [[package]]
 name = "memory-cli"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "chrono",
@@ -2104,7 +2104,7 @@ dependencies = [
 
 [[package]]
 name = "memory-core"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "chrono",
@@ -2121,7 +2121,7 @@ dependencies = [
 
 [[package]]
 name = "memory-embed"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -2135,7 +2135,7 @@ dependencies = [
 
 [[package]]
 name = "memory-embed-server"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "axum",
@@ -2149,7 +2149,7 @@ dependencies = [
 
 [[package]]
 name = "memory-eval"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -2166,7 +2166,7 @@ dependencies = [
 
 [[package]]
 name = "memory-license"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "base64 0.22.1",
@@ -2183,7 +2183,7 @@ dependencies = [
 
 [[package]]
 name = "memory-mcp"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -2201,7 +2201,7 @@ dependencies = [
 
 [[package]]
 name = "memory-server"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "axum",
@@ -2224,7 +2224,7 @@ dependencies = [
 
 [[package]]
 name = "memory-storage"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
@@ -2244,7 +2244,7 @@ dependencies = [
 
 [[package]]
 name = "memory-sync"
-version = "0.1.0"
+version = "0.1.1"
 dependencies = [
  "anyhow",
  "async-trait",
diff --git a/Cargo.toml b/Cargo.toml
index 5c1d260..82c5689 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -15,7 +15,7 @@ members = [
 ]
 
 [workspace.package]
-version = "0.1.0"
+version = "0.1.1"
 edition = "2021"
 authors = ["MemMesh contributors"]
 license = "Apache-2.0"
diff --git a/crates/core/src/extraction.rs b/crates/core/src/extraction.rs
index 2055e30..1bce779 100644
--- a/crates/core/src/extraction.rs
+++ b/crates/core/src/extraction.rs
@@ -73,9 +73,52 @@ pub fn extract(text: &str, ctx: &ObserveContext) -> Vec<ExtractedMemory> {
             out.push(m);
         }
     }
+
+    // Fallback: nothing matched a structured rule, but the input is
+    // substantive prose. Keep it verbatim as a raw `observation` rather than
+    // silently dropping it — an agent memory that discards what the user tells
+    // it is worse than one that over-captures. The structured rules are
+    // first-person-anchored ("I prefer…", "we decided…"); most real input
+    // (third-person, questions aside, arbitrary facts) matches nothing, so
+    // without this the store stays empty. Hosted LLM extraction refines these
+    // into typed facts; locally we at least never lose them.
+    if out.is_empty() {
+        if let Some(m) = fallback_observation(text) {
+            out.push(m);
+        }
+    }
+
     out
 }
 
+/// Keep substantive input that matched no structured rule as a raw
+/// `observation`. Filters out questions, code/commands, and short fragments so
+/// the store fills with statements rather than chatter or one-word acks.
+fn fallback_observation(text: &str) -> Option<ExtractedMemory> {
+    let trimmed = text.trim();
+    if is_code_or_command(trimmed) {
+        return None;
+    }
+    // Questions ask, they don't assert — skip them.
+    if trimmed.ends_with('?') {
+        return None;
+    }
+    // Require some substance so acks that slipped past the filler filter
+    // ("sounds good to me") don't become memories.
+    let word_count = trimmed.split_whitespace().count();
+    if trimmed.chars().count() < 24 || word_count < 4 {
+        return None;
+    }
+    Some(ExtractedMemory {
+        content: normalize_subject(trimmed),
+        kind: "observation",
+        scope: MemoryScope::Project,
+        importance: 3.0,
+        impact: MemoryImpact::Low,
+        reason: "raw-observation",
+    })
+}
+
 /// Split a message into sentence-ish lines for per-clause extraction. Real
 /// NLP-grade sentence splitting is overkill; we just want to keep distinct
 /// statements distinct.
@@ -546,4 +589,36 @@ mod tests {
         let out = extract("What do you think we should do here?", &ctx());
         assert!(out.is_empty());
     }
+
+    #[test]
+    fn third_person_statement_kept_as_raw_observation() {
+        // Matches no first-person rule, but must not be dropped.
+        let out = extract("Ryan prefers pnpm over npm for all projects.", &ctx());
+        assert_eq!(out.len(), 1);
+        assert_eq!(out[0].kind, "observation");
+        assert_eq!(out[0].reason, "raw-observation");
+        assert!(out[0].content.to_lowercase().contains("pnpm"));
+    }
+
+    #[test]
+    fn arbitrary_fact_captured_via_fallback() {
+        let out = extract("Ryan's email is ryan@thinkfleet.ai for work.", &ctx());
+        assert_eq!(out.len(), 1);
+        assert_eq!(out[0].kind, "observation");
+    }
+
+    #[test]
+    fn structured_rule_still_wins_over_fallback() {
+        // A first-person preference should classify as `preference`, not the
+        // generic `observation` fallback.
+        let out = extract("I prefer Vitest over Jest for testing.", &ctx());
+        assert_eq!(out.len(), 1);
+        assert_eq!(out[0].kind, "preference");
+    }
+
+    #[test]
+    fn fallback_skips_questions_and_short_fragments() {
+        assert!(extract("What should we do about the migration here?", &ctx()).is_empty());
+        assert!(extract("Sounds good to me", &ctx()).is_empty());
+    }
 }
diff --git a/crates/mcp/src/lib.rs b/crates/mcp/src/lib.rs
index 0069a00..ba1535d 100644
--- a/crates/mcp/src/lib.rs
+++ b/crates/mcp/src/lib.rs
@@ -324,6 +324,38 @@ fn tool_definitions() -> serde_json::Value {
                     }
                 }
             }
+        },
+        {
+            "name": "memory_delete",
+            "description": "Delete a memory by id. Soft-delete by default (marks it deleted, recoverable); pass hard=true to remove the row permanently. Use to correct a mistake or honor a 'forget this' request.",
+            "inputSchema": {
+                "type": "object",
+                "required": ["id"],
+                "properties": {
+                    "id":   { "type": "string", "description": "id of the memory to delete." },
+                    "hard": { "type": "boolean", "default": false, "description": "true = permanent hard delete; false = recoverable soft delete." }
+                }
+            }
+        },
+        {
+            "name": "memory_supersede",
+            "description": "Mark one memory as superseded by another — the old memory is kept for audit/history but is no longer the current truth. Use when a fact changes ('actually we moved to Postgres'): save the new memory, then supersede the old one by the new id.",
+            "inputSchema": {
+                "type": "object",
+                "required": ["id", "byId"],
+                "properties": {
+                    "id":   { "type": "string", "description": "id of the memory being superseded (the old / outdated one)." },
+                    "byId": { "type": "string", "description": "id of the memory that replaces it (the new current one)." }
+                }
+            }
+        },
+        {
+            "name": "memory_stats",
+            "description": "Return counts about the memory store — currently the total number of memories held. Useful for a health check or a 'how much do you remember' summary.",
+            "inputSchema": {
+                "type": "object",
+                "properties": {}
+            }
         }
     ])
 }
@@ -421,6 +453,30 @@ async fn handle_tool_call<S: Storage>(
 
         "memory_commit_extraction" => commit_extraction(storage, args).await,
 
+        "memory_delete" => {
+            let id = arg_str(args, "id")?;
+            let hard = args.get("hard").and_then(|v| v.as_bool()).unwrap_or(false);
+            storage.delete(id, hard).await?;
+            Ok(text_result(&format!(
+                "{} memory {id}",
+                if hard { "hard-deleted" } else { "deleted" }
+            )))
+        }
+
+        "memory_supersede" => {
+            let id = arg_str(args, "id")?;
+            let by_id = arg_str(args, "byId")?;
+            storage.supersede(id, by_id).await?;
+            Ok(text_result(&format!("superseded {id} by {by_id}")))
+        }
+
+        "memory_stats" => {
+            let total = storage.count_items().await?;
+            Ok(text_result(&serde_json::to_string_pretty(
+                &serde_json::json!({ "totalMemories": total }),
+            )?))
+        }
+
         other => anyhow::bail!("unknown tool: {other}"),
     }
 }
diff --git a/integrations/memmesh-plugin/.claude-plugin/plugin.json b/integrations/memmesh-plugin/.claude-plugin/plugin.json
index 49ee1e6..7871fc2 100644
--- a/integrations/memmesh-plugin/.claude-plugin/plugin.json
+++ b/integrations/memmesh-plugin/.claude-plugin/plugin.json
@@ -1,7 +1,7 @@
 {
   "name": "memmesh",
-  "version": "0.1.0",
-  "description": "Persistent memory + calibrated prediction for AI agents. Remembers decisions, preferences, and patterns across sessions; predicts what a subject will do next — with provenance and honest abstention.",
+  "version": "0.1.1",
+  "description": "Persistent, local-first memory for AI agents. Remembers facts, preferences, and decisions across sessions with a bi-temporal knowledge graph, over MCP — runs fully local on SQLite with no mandatory LLM calls. Calibrated prediction & behavior discovery available in hosted mode.",
   "author": {
     "name": "ThinkFleet",
     "email": "support@memmesh.ai"
diff --git a/integrations/memmesh-plugin/skills/behaviors/SKILL.md b/integrations/memmesh-plugin/skills/behaviors/SKILL.md
index 1a019ca..8c60a37 100644
--- a/integrations/memmesh-plugin/skills/behaviors/SKILL.md
+++ b/integrations/memmesh-plugin/skills/behaviors/SKILL.md
@@ -9,6 +9,9 @@ description: >
 
 # behaviors
 
+> **⚙️ Requires MemMesh hosted mode.** Calibrated prediction and behavior discovery run on the hosted engine — set your `mm-` API key. On a local / open-source install these tools (`memory_predict`, `memory_build_context`) are not registered; if a call returns "unknown tool", tell the user this is a hosted capability and fall back to `search` / `recall` for what's already known.
+
+
 Show the patterns MemMesh discovered on its own. These `behavior_pattern`
 memories are what `predict` projects forward — inspecting them explains the
 forecasts.
diff --git a/integrations/memmesh-plugin/skills/context-loader/SKILL.md b/integrations/memmesh-plugin/skills/context-loader/SKILL.md
index dcf122a..1d28bdf 100644
--- a/integrations/memmesh-plugin/skills/context-loader/SKILL.md
+++ b/integrations/memmesh-plugin/skills/context-loader/SKILL.md
@@ -10,6 +10,9 @@ description: >
 
 # context-loader
 
+> **⚙️ Requires MemMesh hosted mode.** Calibrated prediction and behavior discovery run on the hosted engine — set your `mm-` API key. On a local / open-source install these tools (`memory_predict`, `memory_build_context`) are not registered; if a call returns "unknown tool", tell the user this is a hosted capability and fall back to `search` / `recall` for what's already known.
+
+
 Prime the session with the right memory before you act.
 
 ## General project/session context
diff --git a/integrations/memmesh-plugin/skills/graph/SKILL.md b/integrations/memmesh-plugin/skills/graph/SKILL.md
index 809a02f..5c804a8 100644
--- a/integrations/memmesh-plugin/skills/graph/SKILL.md
+++ b/integrations/memmesh-plugin/skills/graph/SKILL.md
@@ -9,6 +9,9 @@ description: >
 
 # graph
 
+> **⚙️ Graph reasoning requires MemMesh hosted mode.** Building the graph works locally: `memory_extract_pending` → `memory_commit_extraction` populate typed entities/edges. Multi-hop **reasoning/traversal** (`memory_graph_reason`, `memory_query_graph`, `memory_prefetch_related`) runs on the hosted engine — set your `mm-` API key. If those return "unknown tool" on a local install, say so and use `search` over the extracted entities instead.
+
+
 MemMesh links memories into a knowledge graph whose edges are **bi-temporal**
 (each has `valid_from` / `valid_to`). That enables answers a flat store can't
 give.
diff --git a/integrations/memmesh-plugin/skills/predict/SKILL.md b/integrations/memmesh-plugin/skills/predict/SKILL.md
index f2a59e1..50cc8c3 100644
--- a/integrations/memmesh-plugin/skills/predict/SKILL.md
+++ b/integrations/memmesh-plugin/skills/predict/SKILL.md
@@ -10,6 +10,9 @@ description: >
 
 # predict
 
+> **⚙️ Requires MemMesh hosted mode.** Calibrated prediction and behavior discovery run on the hosted engine — set your `mm-` API key. On a local / open-source install these tools (`memory_predict`, `memory_build_context`) are not registered; if a call returns "unknown tool", tell the user this is a hosted capability and fall back to `search` / `recall` for what's already known.
+
+
 Turn accumulated memory into a forward forecast. Unlike `search` ("what do we
 know"), `predict` answers "what happens next" — and it tells you how confident it
 honestly is, or abstains.
diff --git a/integrations/memmesh-plugin/skills/why/SKILL.md b/integrations/memmesh-plugin/skills/why/SKILL.md
index 9e8b4a4..2e0b0d6 100644
--- a/integrations/memmesh-plugin/skills/why/SKILL.md
+++ b/integrations/memmesh-plugin/skills/why/SKILL.md
@@ -10,6 +10,9 @@ description: >
 
 # why
 
+> **⚙️ Requires MemMesh hosted mode.** Calibrated prediction and behavior discovery run on the hosted engine — set your `mm-` API key. On a local / open-source install these tools (`memory_predict`, `memory_build_context`) are not registered; if a call returns "unknown tool", tell the user this is a hosted capability and fall back to `search` / `recall` for what's already known.
+
+
 Make MemMesh's outputs auditable. Every prediction and consolidated fact carries
 provenance and a calibrated confidence — this skill exposes them so a human can
 check the reasoning.