diff --git a/BUILD-LOG.md b/BUILD-LOG.md
index 7eac6f10..19d91652 100644
--- a/BUILD-LOG.md
+++ b/BUILD-LOG.md
@@ -163,4 +163,33 @@ Configuration-driven Hello World verified. `main` merged with M1 and tagged `con
 
 Mission/task layer verified end-to-end. `main` merged with M2 and tagged `mission-task-v1`.
 
+---
+
+## Phase 7: Release model and safe updates (M3)
+
+### Entry 7.1 — before
+
+- Timestamp: 2026-09-03
+- Intended action: Add the release substrate (Gitea milestone M3, issues #10-#13): RELEASE file single-sources the version (0.0.X line per owner direction), image tags derive from it, scripts/release.sh provides package/activate/rollback/status, activation is health-gated by the M2 task runner, pointer + append-only log under <dataRoot>/state/.
+- Reason: The owner's top invariant — updates must never corrupt a working installation — needs a mechanism, not a convention: gate-then-flip with recorded history and rollback.
+- Expected result: Update, refusal, and rollback drills all green with config checksums unchanged.
+
+### Entry 7.2 — after
+
+- Timestamp: 2026-09-03
+- Commands run: scripts/test-release.sh (14 cases); recorded drills: update (0.0.3 -> 0.0.4 package+activate+verify), fault-injected refusal, rollback to 0.0.3.
+- Observed result:
+  - Selftests: 14 passed, 0 failed.
+  - Update drill: packaged and activated r0.0.4 after exact-marker health gate; verify green under the new tag; config checksum unchanged.
+  - Refusal drill: health-gate fault injection -> activation refused (exit 1), pointer untouched, refusal appended to the log.
+  - Rollback drill: health-gated rollback to r0.0.3; pointer restored; log records package/activate/refused/rollback history append-only.
+- Failure or correction:
+  1. release.sh initially failed with missing state/ directory (no mkdir before pointer/log writes); fixed.
+  2. Selftest harness mutated the repo RELEASE and restored the mutated copy (mv-back bug) plus a second trap replacing the first; fixed with inline backup restore and one self-healing exit trap. Product code unaffected.
+- Credential check: no credential material in release state, logs, or drills.
+
+## Result (M3)
+
+Release model and safe updates verified by drills. `main` merged with M3 and tagged `release-model-v1`.
+
 
diff --git a/README.md b/README.md
index 5d608c30..3788bc93 100644
--- a/README.md
+++ b/README.md
@@ -83,6 +83,24 @@ scripts/test-task.sh                                   # selftests (schema negat
 
 A run exits 0 only when its expectation is met (`expectExact` match); mismatches, nonzero agent exits, and timeouts record `status: failed` in `result.json` and exit 1. Each run gets a unique directory — rerunning never rewrites history.
 
+## Release model (M3)
+
+`RELEASE` single-sources the release version (0.0.X until declared stable); the image tag derives from it plus the pinned Pi version. Activation is health-gated and every event is recorded:
+
+```bash
+scripts/release.sh package                    # build + tag the release image
+scripts/release.sh activate                   # health check (exact marker) -> atomic pointer swap
+scripts/release.sh activate --fault-injection # prove the refusal path (drills only)
+scripts/release.sh rollback                   # health-gated return to the previous release
+scripts/release.sh status                     # release, tag, active pointer, recent log
+scripts/test-release.sh                       # release selftests
+```
+
+- `<dataRoot>/state/active.json` — the activation pointer (atomic tmp+rename replace)
+- `<dataRoot>/state/activation-log.jsonl` — append-only history: package / activate / refused / rollback
+
+A failed health check never activates; the previously active release remains deployed. Updating the software therefore cannot corrupt the running installation: package beside, gate, then flip. Verified by the update/refusal/rollback drills in BUILD-LOG Phase 7.
+
 See `docs/plans/2026-09-02_atomic-mosaic-foundation.md` for the full plan.
 
 Inside the container:
@@ -95,7 +113,8 @@ Inside the container:
 
 ## How it works
 
-1. `scripts/build.sh` builds `mosaic-poc-agent:0.84.4` with Docker Compose.
+1. `scripts/build.sh` builds the release image (`mosaic-poc-agent:<pi>-r<release>`,
+   tag derived from `RELEASE` + the pinned Pi version) with Docker Compose.
 2. On each run, `/opt/mosaic/src/load-contracts.sh` reads the four contract files
    in fixed order (CONSTITUTION, STANDARDS, SOUL, USER), joins them with clear
    separators, and writes `/var/lib/mosaic/system-prompt.md`.
@@ -116,8 +135,10 @@ scripts/build.sh       # build the image
 scripts/hello.sh       # one-shot request; prints the model response
 scripts/verify.sh      # full gated test; exit 0 only on exact MOSAIC_HELLO_OK
 scripts/run-task.sh    # run a mission/task file (see Missions & tasks)
+scripts/release.sh     # package / activate / rollback / status (see Release model)
 scripts/test-config.sh # fast config-layer selftests (no Docker)
 scripts/test-task.sh   # mission/task selftests (schema + live runs)
+scripts/test-release.sh # release selftests
 scripts/reset.sh       # delete the configured data root (safety-checked)
 ```