diff --git a/README.md b/README.md
index 1024e10..9560275 100644
--- a/README.md
+++ b/README.md
@@ -357,3 +357,44 @@ python -m build
 
 Tests use deterministic service/model fixtures. They establish integration behavior,
 not detection effectiveness, customer savings, or production capacity.
+
+
+### Runnable Ollama provider example
+
+[`examples/ollama_budget.py`](examples/ollama_budget.py) wraps a real
+[`ollama.AsyncClient.generate`](https://github.com/ollama/ollama-python) call
+with the existing published WebDecoy SDK. Install the example dependencies:
+
+```sh
+python -m pip install -r examples/requirements-ollama.txt
+ollama pull qwen2.5:0.5b
+python examples/ollama_budget.py
+```
+
+Run Ollama locally first. Set `WEBDECOY_KEY`, `WEBDECOY_PROPERTY_ID` and a stable
+server-only `WEBDECOY_SUBJECT_SECRET` (at least 32 characters). The demo uses
+fixed local identities and observe mode. In an application, call `generate()`
+after authentication, tenant authorization and request admission; supply only
+server-derived account/organization context and pass the admission decision ID
+for correlation. Handle budget denial before starting a response. Do not expose
+the demo identities as public authentication.
+
+The example sends prompts only to loopback Ollama and accounting metadata to
+WebDecoy. It uses one fixed local model with zero monetary rates, no fallback,
+raw generation, a 1,024-byte input bound, a 2,048-token context setting and
+128-token output setting. It reserves the full input context plus output allowance.
+These depend on the provider honoring its settings; byte length is not an exact
+token count. Overruns remain visible and are not a guaranteed billing ceiling.
+
+This example is non-streaming. It validates final provider/model/count fields;
+missing usage retains the reservation, while explicit zero can settle it. Errors
+and cancellation never retry inference or refund unknown work; settlement failure
+preserves the returned text. Cancellation does not prove the server stopped work.
+For streaming ownership, see the budget lifecycle guidance above. LangChain,
+LangGraph and automatic HTTP streaming integration are follow-up work.
+
+CI uses the real pinned Ollama 0.6.3 Python SDK with an in-memory HTTP transport
+and synthetic final responses. It verifies serialization, usage normalization,
+denial before the provider, privacy, cancellation and accounting failures. It
+does not execute a model or validate live provider billing or model quality.
+Ollama is an example dependency, not a dependency of the WebDecoy package.
diff --git a/examples/ollama_budget.py b/examples/ollama_budget.py
new file mode 100644
index 0000000..bf0e7ed
--- /dev/null
+++ b/examples/ollama_budget.py
@@ -0,0 +1,85 @@
+"""One non-streaming local Ollama attempt, after application auth/admission."""
+
+import asyncio
+import os
+
+from ollama import AsyncClient
+
+from webdecoy_ai_protection import (
+    Budget,
+    BudgetCall,
+    BudgetCompletion,
+    BudgetLimits,
+    BudgetPrice,
+    BudgetSubject,
+    Client,
+    ollama_budget_usage,
+)
+
+MODEL = "qwen2.5:0.5b"
+CONTEXT_TOKENS = 2048
+OUTPUT_TOKENS = 128
+
+
+async def generate(protection, provider, trusted_context, prompt, request_id=None):
+    """Preserve output and accounting status; do not retry on accounting failure."""
+    if not isinstance(prompt, str) or not 1 <= len(prompt.encode("utf-8")) <= 1024:
+        raise ValueError("prompt must contain 1–1024 UTF-8 bytes")
+
+    async def attempt(runtime):
+        if runtime.provider != "ollama" or runtime.model != MODEL:
+            raise ValueError("example requires the configured local model")
+        # Raw generation excludes model templates/history/tools. Reserve the
+        # entire configured input context, not a character-based token estimate.
+        response = await provider.generate(
+            model=runtime.model,
+            prompt=prompt,
+            raw=True,
+            stream=False,
+            options={"num_ctx": runtime.max_input_tokens, "num_predict": runtime.max_output_tokens},
+        )
+        usage = ollama_budget_usage(
+            response.model, response.done, response.prompt_eval_count, response.eval_count
+        )
+        return BudgetCompletion(response.response, usage)
+
+    return await protection.run_budget(
+        trusted_context,
+        BudgetCall("local", CONTEXT_TOKENS, OUTPUT_TOKENS, request_id),
+        attempt,
+    )
+
+
+async def main():
+    budget = Budget(
+        rule_id="ollama_example_v1",
+        subject_secret=os.environ["WEBDECOY_SUBJECT_SECRET"],
+        subject=lambda ctx: BudgetSubject(ctx["account_id"], ctx["organization_id"]),
+        window_seconds=3600,
+        limits=BudgetLimits(account_tokens=100_000),
+        prices={"local": BudgetPrice("ollama", MODEL, 0, 0)},
+        mode="observe",
+        failure_mode="open",
+    )
+    # Explicit loopback host and local model: no paid-provider fallback.
+    provider = AsyncClient(host="http://127.0.0.1:11434", timeout=60, trust_env=False)
+    async with Client(
+        api_key=os.environ["WEBDECOY_KEY"],
+        property_id=os.environ["WEBDECOY_PROPERTY_ID"],
+        budget=budget,
+    ) as protection:
+        result = await generate(
+            protection,
+            provider,
+            {"account_id": "local-demo", "organization_id": "local-demo"},
+            "Say hello in one short sentence.",
+        )
+        print(result.reason)
+        if result.allowed:
+            print(result.value)
+        else:
+            print(f"Denied: HTTP {result.status}; retry after {result.retry_after_seconds}s")
+
+
+if __name__ == "__main__":
+    asyncio.run(main())
diff --git a/examples/requirements-ollama.txt b/examples/requirements-ollama.txt
new file mode 100644
index 0000000..6a1da65
--- /dev/null
+++ b/examples/requirements-ollama.txt
@@ -0,0 +1,2 @@
+webdecoy-ai-protection==0.1.0a1
+ollama==0.6.3
diff --git a/pyproject.toml b/pyproject.toml
index 01dc777..5e145bd 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -20,7 +20,7 @@ Issues = "https://github.com/WebDecoy/ai-protection-python/issues"
 
 [project.optional-dependencies]
 fastapi = ["fastapi>=0.115,<1"]
-dev = ["fastapi>=0.115,<1", "uvicorn>=0.34,<1", "build>=1.2,<2", "ruff>=0.11,<1"]
+dev = ["fastapi>=0.115,<1", "uvicorn>=0.34,<1", "build>=1.2,<2", "ruff>=0.11,<1", "ollama==0.6.3"]
 
 [tool.hatch.build.targets.wheel]
 packages = ["src/webdecoy_ai_protection"]
diff --git a/tests/test_ollama_example.py b/tests/test_ollama_example.py
new file mode 100644
index 0000000..e117ee9
--- /dev/null
+++ b/tests/test_ollama_example.py
@@ -0,0 +1,139 @@
+"""Exercise the real Ollama SDK HTTP serialization and response parsing offline."""
+
+import asyncio
+import json
+import unittest
+
+import httpx
+from ollama import AsyncClient, ResponseError
+from test_budget import BudgetFixture, policy
+
+from examples.ollama_budget import MODEL, generate
+from webdecoy_ai_protection import BudgetPrice
+
+
+class OllamaExampleTests(unittest.IsolatedAsyncioTestCase):
+    async def run_example(self, payload=None, *, override=None, error=False, cancel=False):
+        fixture = BudgetFixture()
+        fixture.override.update(override or {})
+        calls = []
+
+        async def handle(request):
+            calls.append(json.loads(request.content))
+            self.assertEqual(request.url.path, "/api/generate")
+            self.assertEqual(len(fixture.budget_calls), 1)  # reserve before inference
+            if cancel:
+                raise asyncio.CancelledError()
+            if error:
+                return httpx.Response(500, json={"error": "provider unavailable"})
+            return httpx.Response(
+                200,
+                json=payload
+                or {
+                    "model": MODEL,
+                    "done": True,
+                    "response": "private answer",
+                    "prompt_eval_count": 12,
+                    "eval_count": 4,
+                },
+            )
+
+        provider = AsyncClient(host="http://localhost:11434", transport=httpx.MockTransport(handle))
+        config = policy(prices={"local": BudgetPrice("ollama", MODEL, 0, 0)}, mode="enforce")
+        async with fixture.client(budget=config) as client:
+            try:
+                result = await generate(client, provider, None, "private prompt")
+            except (ResponseError, asyncio.CancelledError) as exc:
+                result = exc
+            await client.flush()
+        return result, fixture, calls
+
+    async def test_real_sdk_request_and_final_usage_privacy(self):
+        result, fixture, calls = await self.run_example()
+        self.assertEqual(result.value, "private answer")
+        self.assertEqual(result.reason, "budget_settled")
+        self.assertEqual(len(calls), 1)
+        self.assertEqual(calls[0]["model"], MODEL)
+        self.assertTrue(calls[0]["raw"])
+        self.assertFalse(calls[0]["stream"])
+        self.assertEqual(calls[0]["options"], {"num_ctx": 2048, "num_predict": 128})
+        self.assertEqual(fixture.budget_calls[0]["tokens"], 2176)
+        self.assertEqual(fixture.budget_calls[1]["tokens"], 16)
+        wire = json.dumps([fixture.budget_calls, fixture.usage])
+        self.assertNotIn("private prompt", wire)
+        self.assertNotIn("private answer", wire)
+
+    async def test_denial_never_calls_provider(self):
+        result, fixture, calls = await self.run_example(
+            override={
+                "reserve": {
+                    "schema": 1,
+                    "allowed": False,
+                    "granted": False,
+                    "overrun": False,
+                    "reason": "budget_exceeded",
+                    "retry_after_seconds": 30,
+                }
+            }
+        )
+        self.assertEqual(result.status, 429)
+        self.assertEqual(calls, [])
+        self.assertEqual(len(fixture.budget_calls), 1)
+
+    async def test_unknown_or_wrong_model_retains_reservation(self):
+        for fields in (
+            {},
+            {"prompt_eval_count": 12},
+            {"model": "other", "prompt_eval_count": 12, "eval_count": 4},
+            {"done": False, "prompt_eval_count": 12, "eval_count": 4},
+        ):
+            with self.subTest(fields=fields):
+                result, fixture, calls = await self.run_example(
+                    {
+                        "model": MODEL,
+                        "done": True,
+                        "response": "answer",
+                        **fields,
+                    }
+                )
+                self.assertEqual(result.value, "answer")
+                self.assertEqual(result.reason, "budget_usage_unknown")
+                self.assertEqual(len(fixture.budget_calls), 1)
+                self.assertEqual(len(calls), 1)
+
+    async def test_explicit_zero_settles(self):
+        result, fixture, _ = await self.run_example(
+            {
+                "model": MODEL,
+                "done": True,
+                "response": "",
+                "prompt_eval_count": 0,
+                "eval_count": 0,
+            }
+        )
+        self.assertEqual(result.reason, "budget_settled")
+        self.assertEqual(fixture.budget_calls[-1]["tokens"], 0)
+
+    async def test_accounting_outage_keeps_output_without_retry(self):
+        result, fixture, calls = await self.run_example(override={"settle": 503})
+        self.assertEqual(result.value, "private answer")
+        self.assertEqual(result.reason, "budget_settlement_unavailable")
+        self.assertEqual(len(calls), 1)
+        self.assertEqual(len(fixture.budget_calls), 2)
+
+    async def test_error_and_cancellation_never_settle_or_retry(self):
+        for options, exception in (
+            ({"error": True}, ResponseError),
+            ({"cancel": True}, asyncio.CancelledError),
+        ):
+            result, fixture, calls = await self.run_example(**options)
+            self.assertIsInstance(result, exception)
+            self.assertEqual(len(calls), 1)
+            self.assertEqual(len(fixture.budget_calls), 1)
+
+    async def test_input_bound_before_reservation(self):
+        fixture = BudgetFixture()
+        async with fixture.client(budget=policy()) as client:
+            with self.assertRaises(ValueError):
+                await generate(client, None, None, "a" * 1025)
+        self.assertEqual(fixture.budget_calls, [])