The project root is the nearest ancestor containing `.git`; without one, the current cwd is used. The user DSH root skips `.system` during normal user scanning so system skills are read exactly once. Same-name skills keep the highest-priority copy, then model-visible summaries are sorted by skill name for stable prompts and provider prefix-cache friendliness.
Discovery is memoized per resolved root set and runtime-skill revision. Runtime `register()` and disposer calls invalidate the cache; disk-only changes are picked up on the next invalidation or process restart.
## Skill Format
Skills can be single-level directory bundles (`<name>/SKILL.md`) or flat Markdown files (`<name>.md`). Nested `**/SKILL.md` discovery is intentionally not part of v1. Frontmatter requires `name` and `description`; `whenToUse`, `disableModelInvocation`, and `metadata` are optional. Names must be kebab-case.
## Prompt Integration
The service listens on `agent/request` and appends a short `## Skills` listing to the request system prompt for the calling agent's cwd. The listing contains only stable routing metadata (`name`, `source`, `description`, and optional `whenToUse`), not skill bodies or local absolute paths. `description` and `whenToUse` are whitespace-normalized and capped in the listing so one pathological skill cannot bloat every model request. Models load full instructions through the `skill` tool.
## System Skills
On startup, the service ensures bundled system skills exist under `~/.dsh/skills/.system` unless `installSystemSkills: false` is configured. Project, runtime, user, and extra-root skills can override system skills by name.