diff --git a/ARCHITECTURE.md b/ARCHITECTURE.md
index a87207b..220c6a6 100644
--- a/ARCHITECTURE.md
+++ b/ARCHITECTURE.md
@@ -59,6 +59,29 @@ User prompt: "make me a cat video"
    Federated web (followers see it)
 ```
 
+## Effects and Recipes
+
+**Effects** are atomic transformations:
+- `effect:identity` - returns input unchanged
+- `effect:dog` - ignores input, returns dog.mkv
+- `effect:glitch` - applies glitch effect
+- Registered with content hash, owned by creator
+
+**Recipes** are compositions of effects:
+- A single effect IS a recipe (the simplest case)
+- Complex recipes chain/branch multiple effects into a DAG
+- Registered with content hash, owned by creator
+- Recipe composer earns when their recipe is used
+
+```
+Simple recipe:    input → effect:dog → output
+
+Complex recipe:   input ─┬→ effect:resize ──┬→ effect:overlay → output
+                         └→ effect:glitch ──┘
+```
+
+Both effects and recipes are registered assets. Both creators earn from downstream usage.
+
 ## Provenance Chain
 
 Every output knows its lineage: