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+# Requirements: AI Backend Studio
+
+**Defined:** 2026-03-28
+**Core Value:** A user can configure and operate the runtime from one trustworthy workspace without the UI fighting their in-progress edits.
+
+## v1 Requirements
+
+### Runtime Workspace
+
+- [x] **WORK-01**: User can access one authoritative runtime workspace for runtime status, lifecycle actions, and runtime settings
+- [x] **WORK-02**: User can understand the difference between live runtime state and unsaved draft settings while editing
+
+### Settings Safety
+
+- [x] **CONF-01**: User can edit runtime settings without background polling or refresh overwriting dirty fields
+- [x] **CONF-02**: User can explicitly save, cancel, or revert runtime settings changes
+- [x] **CONF-03**: User can keep folder-path and provider/model-source selections stable until they choose to change or discard them
+- [x] **CONF-04**: User can recover from failed save or validation errors without losing the current draft
+
+### Runtime Control
+
+- [x] **CTRL-01**: User can start, stop, and retry runtime lifecycle actions from the runtime workspace with clear in-progress and completion feedback
+- [x] **CTRL-02**: User can tell whether a configuration change applies immediately or requires restart/restart-and-apply semantics
+- [x] **CTRL-03**: User cannot trigger conflicting runtime actions while another lifecycle operation is still in progress
+
+### Model Sources
+
+- [ ] **MODL-01**: User can choose runtime/model sources and only see valid model choices for the current source and mode
+- [ ] **MODL-02**: User can select managed library and models folder locations with validation before saving
+
+### Diagnostics
+
+- [x] **DIAG-01**: User can see actionable runtime health details, including readiness, endpoint/mode context, active model context, and relevant failure guidance
+
+## v2 Requirements
+
+### Runtime Workspace Enhancements
+
+- **WORK-03**: User can compare live runtime state and draft settings side by side in a dedicated compare view
+- **WORK-04**: User can restore unsaved runtime drafts after app reload or restart
+
+### Model Sources Enhancements
+
+- **MODL-03**: User can preserve separate drafts when switching between local and remote/runtime source modes
+- **MODL-04**: User can browse richer model compatibility hints and source provenance before applying a model change
+
+### Diagnostics Enhancements
+
+- **DIAG-02**: User can see per-setting impact previews before saving high-impact runtime changes
+- **DIAG-03**: User can trigger guided repair actions such as open logs, reveal models folder, or reset to last saved state from diagnostic surfaces
+
+## Out of Scope
+
+| Feature | Reason |
+|---------|--------|
+| Backend inference engine changes | This milestone targets runtime workspace UX and frontend/runtime-management flow, not model execution internals |
+| Broad chat experience redesign | Chat is already validated and is outside the runtime-workspace trust problem |
+| Silent autosave for runtime-impacting settings | Explicit save/cancel semantics are required to avoid surprise mutations and restarts |
+| Separate full-featured status and settings control centers | The roadmap should reduce duplication, not preserve split-brain control surfaces |
+| Cloud control plane or multi-user orchestration | The scoped work is for the current local-first desktop experience |
+
+## Traceability
+
+| Requirement | Phase | Status |
+|-------------|-------|--------|
+| WORK-01 | Phase 3 | Complete |
+| WORK-02 | Phase 1 | Complete |
+| CONF-01 | Phase 1 | Complete |
+| CONF-02 | Phase 1 | Complete |
+| CONF-03 | Phase 1 | Complete |
+| CONF-04 | Phase 1 | Complete |
+| CTRL-01 | Phase 2 | Complete |
+| CTRL-02 | Phase 2 | Complete |
+| CTRL-03 | Phase 2 | Complete |
+| MODL-01 | Phase 4 | Pending |
+| MODL-02 | Phase 4 | Pending |
+| DIAG-01 | Phase 3 | Complete |
+
+**Coverage:**
+- v1 requirements: 12 total
+- Mapped to phases: 12
+- Unmapped: 0
+
+---
+*Requirements defined: 2026-03-28*
+*Last updated: 2026-03-29 after Phase 2 completion*