diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 7f56b971d..bad33481c 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -149,13 +149,20 @@ this way, make sure you run the `hermes` entrypoint from this venv; running the
 system `python3 -m hermes_cli.main` can pick up unrelated system Python
 packages.
 
+Create the venv **outside** the cloned source tree. A venv that lives inside
+the directory the agent operates from can be wiped by a relative-path command
+the agent runs against its own checkout (`rm -rf venv`, `uv venv venv`, etc.),
+which silently destroys the running runtime mid-session. Keeping it outside the
+tree means no relative path from the workspace resolves to it.
+
 ```bash
 git clone https://github.com/NousResearch/hermes-agent.git
 cd hermes-agent
 
-# Create venv with Python 3.11
-uv venv venv --python 3.11
-export VIRTUAL_ENV="$(pwd)/venv"
+# Create venv with Python 3.11, OUTSIDE the source tree
+uv venv ~/.hermes/venvs/hermes-dev --python 3.11
+export VIRTUAL_ENV="$HOME/.hermes/venvs/hermes-dev"
+export PATH="$VIRTUAL_ENV/bin:$PATH"
 
 # Install with all extras (messaging, cron, CLI menus, dev tools)
 uv pip install -e ".[all,dev]"
diff --git a/README.md b/README.md
index 4caad13ce..ba1322a38 100644
--- a/README.md
+++ b/README.md
@@ -232,10 +232,14 @@ scripts/run_tests.sh
 Manual clone fallback (for throwaway clones/CI where you intentionally do not
 want the managed install layout):
 
+Create the venv outside the cloned source tree — a venv inside the directory
+the agent operates from can be wiped by a relative-path command the agent runs
+against its own checkout, destroying the running runtime mid-session.
+
 ```bash
 curl -LsSf https://astral.sh/uv/install.sh | sh
-uv venv .venv --python 3.11
-source .venv/bin/activate
+uv venv ~/.hermes/venvs/hermes-dev --python 3.11
+source ~/.hermes/venvs/hermes-dev/bin/activate
 uv pip install -e ".[all,dev]"
 scripts/run_tests.sh
 ```
diff --git a/website/docs/developer-guide/contributing.md b/website/docs/developer-guide/contributing.md
index d290fb208..e61100a60 100644
--- a/website/docs/developer-guide/contributing.md
+++ b/website/docs/developer-guide/contributing.md
@@ -74,13 +74,20 @@ this way, make sure you run the `hermes` entrypoint from this venv; running the
 system `python3 -m hermes_cli.main` can pick up unrelated system Python
 packages.
 
+Create the venv **outside** the cloned source tree. A venv that lives inside
+the directory the agent operates from can be wiped by a relative-path command
+the agent runs against its own checkout (`rm -rf venv`, `uv venv venv`, etc.),
+which silently destroys the running runtime mid-session. Keeping it outside the
+tree means no relative path from the workspace resolves to it.
+
 ```bash
 git clone https://github.com/NousResearch/hermes-agent.git
 cd hermes-agent
 
-# Create venv with Python 3.11
-uv venv venv --python 3.11
-export VIRTUAL_ENV="$(pwd)/venv"
+# Create venv with Python 3.11, OUTSIDE the source tree
+uv venv ~/.hermes/venvs/hermes-dev --python 3.11
+export VIRTUAL_ENV="$HOME/.hermes/venvs/hermes-dev"
+export PATH="$VIRTUAL_ENV/bin:$PATH"
 
 # Install with all extras (messaging, cron, CLI menus, dev tools)
 uv pip install -e ".[all,dev]"
diff --git a/website/docs/getting-started/updating.md b/website/docs/getting-started/updating.md
index 33b5f1974..1d42519d3 100644
--- a/website/docs/getting-started/updating.md
+++ b/website/docs/getting-started/updating.md
@@ -171,7 +171,9 @@ If you installed manually (not via the quick installer):
 
 ```bash
 cd /path/to/hermes-agent
-export VIRTUAL_ENV="$(pwd)/venv"
+# Activate the venv you created during install (outside the source tree)
+export VIRTUAL_ENV="$HOME/.hermes/venvs/hermes-dev"
+export PATH="$VIRTUAL_ENV/bin:$PATH"
 
 # Pull latest code
 git pull origin main