diff --git a/navi/core/compressor.py b/navi/core/compressor.py
index 549a0de..dcd1723 100644
--- a/navi/core/compressor.py
+++ b/navi/core/compressor.py
@@ -19,7 +19,8 @@
 _SUMMARIZE_SYSTEM = (
     "You are summarizing a conversation history to free up context space. "
     "The assistant will continue working using ONLY this summary — it will have no access "
-    "to the original messages. Be thorough and precise. Prefer specifics over generalities.\n\n"
+    "to the original messages. Be thorough and precise. Prefer specifics over generalities. "
+    "This summary is historical context, not a new user request.\n\n"
     "## Current goal\n"
     "What the user is trying to accomplish in this session. Include any stated deadlines, "
     "constraints, or acceptance criteria.\n\n"
@@ -32,9 +33,10 @@
     "(port numbers, file paths, config keys, IDs) — do not paraphrase if precision matters.\n\n"
     "## Outputs\n"
     "Every file created or modified (full paths). Every config value set. "
-    "Commands run and their output (include verbatim if relevant). "
-    "Code snippets, SQL, configs, or other artifacts produced — include verbatim if short, "
-    "summarize with key details if long.\n\n"
+    "Commands run and their outcome. Preserve exact command output only when it is short "
+    "and needed to prove a result or diagnose an error. "
+    "Do not preserve tool-call-like examples with parenthesized arguments; describe tool "
+    "usage in words or as key/value facts instead.\n\n"
     "## Errors\n"
     "Failures, exceptions, or unexpected results encountered. "
     "How each was resolved — or that it remains unresolved.\n\n"
@@ -42,6 +44,8 @@
     "Corrections the user made to the assistant's approach. Explicit style or behavior "
     "preferences stated during this session. Things the user said not to do.\n\n"
     "Do not include greetings, filler, transitions, or meta-commentary about the summary itself. "
+    "Do not use Markdown code fences or inline-code backticks unless preserving a user-authored "
+    "literal value is essential. "
     "Write in tight prose or bullet points — whatever preserves more information per token."
 )
 
@@ -120,12 +124,12 @@
             # Render tool calls + their results as a compact block
             for tc in m.tool_calls:
                 args_preview = json.dumps(tc.arguments)[:120]
-                lines.append(f"[Called tool `{tc.name}` with {args_preview}]")
+                lines.append(f"[Tool call: {tc.name}; arguments preview: {args_preview}]")
             i += 1
             while i < len(messages) and messages[i].role == "tool":
                 result = messages[i].content or ""
                 preview = result[:300] + ("…" if len(result) > 300 else "")
-                lines.append(f"[Tool `{messages[i].name}` returned: {preview}]")
+                lines.append(f"[Tool result: {messages[i].name}; preview: {preview}]")
                 i += 1
 
         elif m.role == "assistant" and m.content:
@@ -190,7 +194,7 @@
 
     summary_msg = Message(
         role="user",
-        content=f"[Context Summary]\n{summary_text}",
+        content=f"[Context Summary - historical context only, not a new user request]\n{summary_text}",
         is_summary=True,
         created_at=datetime.now(timezone.utc),
     )
diff --git a/navi/memory/extractor.py b/navi/memory/extractor.py
index 6351fdb..000faee 100644
--- a/navi/memory/extractor.py
+++ b/navi/memory/extractor.py
@@ -30,9 +30,13 @@
 - Topics that were discussed or questions that were asked
 - Temporary states ("was tired", "was busy today")
 - Information about third parties that isn't about the user
-- Facts you already know from earlier turns (avoid duplicates)
+- Directory-specific project notes, one-off commands, file paths, task progress, or local quirks
+  that belong in NAVI.md instead of long-term user memory
+- Duplicate facts already present in the transcript
 
-Return a JSON array — empty [] if nothing new to extract:
+Return ONLY a valid JSON array. No markdown, no prose, no comments.
+Return empty [] if nothing new should be extracted.
+Schema:
 [
   {"category": "profile", "key": "name", "value": "Eugene"},
   {"category": "technical", "key": "primary_os", "value": "Arch Linux"},
@@ -46,7 +50,9 @@
 Summarize the facts below in 2-4 short paragraphs (max 400 words).
 Write from the assistant's perspective: what you know about the user.
 Be specific and concrete. Cover the most important identifying details first,
-then preferences and ongoing context."""
+then preferences and ongoing context.
+Do not add facts not present below. Do not include task progress, local directory notes,
+or one-off commands; those belong in NAVI.md, not user memory."""
 
 
 async def extract_and_update(
@@ -108,6 +114,8 @@
         if not isinstance(fact, dict):
             continue
         category = str(fact.get("category", "other")).strip().lower()
+        if category not in {"profile", "preferences", "technical", "projects", "other"}:
+            category = "other"
         key = str(fact.get("key", "")).strip()
         value = str(fact.get("value", "")).strip()
         if key and value: