When configuring Claude Code (or Claude-driven AI coding assistants) in your projects, structuring your instructions efficiently is key to getting accurate code generation while keeping token consumption low.

Understanding when to use a single CLAUDE.md versus modular .claude/rules/ files will help keep your AI assistant sharp, focused, and predictable.

The Core Hierarchy & Scope

Claude Code looks for configurations across multiple levels:

├── ~/.claude/ # User / Global level (applies to all your projects)