diff --git a/_context/wiki/SUMMARY.md b/_context/wiki/SUMMARY.md
index 852527c..b42c69e 100644
--- a/_context/wiki/SUMMARY.md
+++ b/_context/wiki/SUMMARY.md
@@ -14,6 +14,10 @@
 - [Security Model](security.md)
 - [Failure Modes](failure-modes.md)
 
+# Upcoming
+
+- [Phase 3 Final Architecture](mcp-capability-allocation.md)
+
 # Operations
 
 - [Configuration Reference](config.md)
diff --git a/_context/wiki/index.md b/_context/wiki/index.md
index bf43ccb..c46a7c7 100644
--- a/_context/wiki/index.md
+++ b/_context/wiki/index.md
@@ -13,6 +13,7 @@ then follow only the links that are relevant.
 | [preferences.md](preferences.md) | Working standards, code style, logging rules, branch naming, AI interaction preferences |
 | [architecture.md](architecture.md) | Middleware stack order, pipeline shape, module boundaries, state ownership, executor shapes |
 | [routing.md](routing.md) | Backend prefix contract, list/routed ops, federated pagination, session state, capability merge |
+| [mcp-capability-allocation.md](mcp-capability-allocation.md) | Tentative Phase 3 final architecture shown through four Mermaid sequences |
 | [failure-modes.md](failure-modes.md) | HTTP/MCP/routing/backend/plugin failure table — exact HTTP codes and JSON-RPC errors |
 | [config.md](config.md) | Key CLI flags, JWT claims, UserConfig shape, plugin config, telemetry debugging, startup validation, local observability stack |
 | [deployment.md](deployment.md) | Deployment checklist, health endpoint caveat, nginx routing, TLS choices, session affinity, Redis availability, image pinning |
diff --git a/_context/wiki/mcp-capability-allocation.md b/_context/wiki/mcp-capability-allocation.md
new file mode 100644
index 0000000..a4f7734
--- /dev/null
+++ b/_context/wiki/mcp-capability-allocation.md
@@ -0,0 +1,149 @@
+# Phase 3 Final Architecture
+
+> **Tentative:** this is the proposed Phase 3 final architecture and remains
+> subject to review.
+
+### 1. Create a Virtual Server and Select Capabilities
+
+```mermaid
+sequenceDiagram
+    autonumber
+    actor User
+    participant UI as Admin UI or API
+    participant CP as Control Plane
+    participant DB as Control Plane DB
+    participant MCP1 as MCP Server 1
+    participant MCP2 as MCP Server 2
+    participant Redis
+    participant DP as Rust Dataplane
+
+    User->>UI: Create virtual server
+    UI->>CP: Submit virtual server
+    CP->>DB: Store virtual server
+
+    User->>UI: Assign MCP Server 1 and MCP Server 2
+    UI->>CP: Update backend associations
+    CP->>DB: Store backend associations
+
+    par Discover MCP Server 1
+        CP->>MCP1: server/discover and list methods
+        MCP1-->>CP: Capabilities and catalog
+    and Discover MCP Server 2
+        CP->>MCP2: server/discover and list methods
+        MCP2-->>CP: Capabilities and catalog
+    end
+
+    CP->>DB: Reconcile normalized catalog
+    User->>UI: View available tools
+    UI->>CP: Request reconciled catalog
+    CP->>DB: Read catalog
+    DB-->>CP: inc, sum, dec, diff
+    CP-->>UI: Display available tools
+
+    User->>UI: Allow inc and sum
+    UI->>CP: Update virtual server policy
+    CP->>DB: Store selected tools and policy
+
+    CP->>CP: Compile user runtime snapshot
+    CP->>Redis: Atomically publish revision N
+    Redis-->>DP: Revision notification
+    DP->>Redis: Load revision N
+    DP->>DP: Replace local cache atomically
+```
+
+### 2. Discover the Server and List Tools
+
+```mermaid
+sequenceDiagram
+    autonumber
+    participant Client as Modern MCP Client
+    participant Ingress
+    participant DP as Rust Dataplane
+    participant Cache as Local Cache
+    participant Redis
+
+    Client->>Ingress: server/discover
+    Ingress->>DP: Forward modern MCP request
+    DP->>DP: Validate authentication and metadata
+    DP->>Cache: Get virtual server snapshot
+
+    alt Snapshot available
+        Cache-->>DP: Snapshot revision N
+    else Snapshot missing or expired
+        Cache-->>DP: Cache miss
+        DP->>Redis: Read compiled snapshot
+        Redis-->>DP: Snapshot revision N
+        DP->>Cache: Store revision N
+    end
+
+    DP-->>Client: Server identity and capabilities
+    Client->>Ingress: tools/list
+    Ingress->>DP: Forward modern MCP request
+    DP->>Cache: Read visible tools
+    Cache-->>DP: inc and sum
+    DP-->>Client: tools/list result
+
+    Note over DP,Redis: Redis distributes compiled state
+    Note over DP: No live upstream call for discovery or lists
+```
+
+### 3. Call a Tool
+
+```mermaid
+sequenceDiagram
+    autonumber
+    participant Client as Modern MCP Client
+    participant Ingress
+    participant DP as Rust Dataplane
+    participant Cache as Local Cache
+    participant CPEX as Policy and CPEX
+    participant MCP as Selected MCP Server
+
+    Client->>Ingress: tools/call name inc
+    Ingress->>DP: Forward modern MCP request
+    DP->>DP: Validate authentication and metadata
+    DP->>Cache: Resolve exposed tool inc
+    Cache-->>DP: Backend MCP, upstream name inc, allowed
+
+    DP->>CPEX: Run pre-call policy
+    CPEX-->>DP: Allow or modify request
+    DP->>MCP: tools/call name inc
+    MCP-->>DP: Tool result
+    DP->>CPEX: Run post-call policy
+    CPEX-->>DP: Allow or modify result
+    DP-->>Client: Return tool result directly
+
+    Note over DP,MCP: Exactly one upstream is called
+    Note over DP: Control Plane, DB and Redis are not on this result path
+```
+
+### 4. Reconcile an Upstream Catalog Change
+
+```mermaid
+sequenceDiagram
+    autonumber
+    participant MCP as MCP Server
+    participant CP as Control Plane Reconciler
+    participant DB as Control Plane DB
+    participant Redis
+    participant DP as Rust Dataplane
+    participant Client as Subscribed MCP Client
+
+    MCP-->>CP: Tools list changed
+    CP->>MCP: Refresh discovery and tools list
+    MCP-->>CP: Updated catalog
+    CP->>DB: Reconcile catalog changes
+    CP->>CP: Recompile affected snapshots
+    CP->>Redis: Atomically publish revision N plus 1
+
+    Redis-->>DP: Revision notification
+    DP->>Redis: Load revision N plus 1
+    DP->>DP: Replace local cache atomically
+
+    opt Client subscribed to tool list changes
+        DP-->>Client: Tools list changed notification
+    end
+
+    Client->>DP: tools/list
+    DP-->>Client: Updated list from local snapshot
+```