diff --git a/crates/common/src/observability/mod.rs b/crates/common/src/observability/mod.rs
index 7237a2104..a945805eb 100644
--- a/crates/common/src/observability/mod.rs
+++ b/crates/common/src/observability/mod.rs
@@ -110,22 +110,14 @@ pub async fn init_observability(
     service_name: &str,
     otlp_endpoint: &str,
 ) -> CommonResult<()> {
-    // Determine log directory from environment.
-    // In K8s pods, LOG_DIR is typically set to /app/logs (backed by an emptyDir volume).
-    // Locally, falls back to logs/<service_name>.
-    let log_dir = std::env::var("LOG_DIR")
-        .map(|d| format!("{}/{}", d, service_name))
-        .unwrap_or_else(|_| format!("logs/{}", service_name));
-
-    // Disable file logging if the directory cannot be created (e.g. read-only fs).
-    let enable_file = std::fs::create_dir_all(&log_dir).is_ok();
-
+    // Console-only logging: stdout is captured by containerd and shipped
+    // to Loki via Promtail. No file logging needed in K8s.
     let logger_config = JsonLoggerConfig {
         service_name: service_name.to_string(),
         log_level: LogLevel::Info,
         enable_console: true,
-        enable_file,
-        log_directory: log_dir,
+        enable_file: false,
+        log_directory: String::new(),
         rotation: logger::LogRotation::Daily,
         max_files: 10,
         max_file_size_mb: 100,
@@ -133,14 +125,17 @@ pub async fn init_observability(
 
     init_json_logger(logger_config)?;
 
-    // Initialize OpenTelemetry tracing with OTLP export
+    // Initialize OpenTelemetry tracing with OTLP export.
+    // Gracefully degrade if Tempo is unavailable — logging still works.
     let tracing_config = TracingConfig {
         service_name: service_name.to_string(),
         otlp_endpoint: otlp_endpoint.to_string(),
         enable_export: true,
     };
 
-    init_tracing(tracing_config).await?;
+    if let Err(e) = init_tracing(tracing_config).await {
+        eprintln!("OTLP tracing unavailable (non-fatal): {}", e);
+    }
 
     Ok(())
 }
diff --git a/crates/web-gateway/src/grpc/streams.rs b/crates/web-gateway/src/grpc/streams.rs
index 64af53acd..f3b3705ca 100644
--- a/crates/web-gateway/src/grpc/streams.rs
+++ b/crates/web-gateway/src/grpc/streams.rs
@@ -184,14 +184,14 @@ async fn heartbeat_loop(tx: broadcast::Sender<String>) {
 }
 
 /// Reconnect wrapper with exponential backoff for a gRPC stream bridge task.
-#[allow(clippy::infinite_loop)]
+/// Stops retrying if the server returns Unimplemented (endpoint doesn't exist).
 async fn reconnect_loop<F, Fut>(stream_name: &str, connect_fn: F)
 where
     F: Fn() -> Fut,
     Fut: std::future::Future<Output = Result<(), tonic::Status>>,
 {
     let mut backoff = Duration::from_secs(1);
-    let max_backoff = Duration::from_secs(60);
+    let max_backoff = Duration::from_secs(300);
 
     loop {
         info!("Connecting gRPC stream: {}", stream_name);
@@ -202,6 +202,13 @@ where
                 backoff = Duration::from_secs(1);
                 info!("gRPC stream {} ended, reconnecting", stream_name);
             }
+            Err(e) if e.code() == tonic::Code::Unimplemented => {
+                info!(
+                    "gRPC stream {} not implemented on server, disabling",
+                    stream_name
+                );
+                return;
+            }
             Err(e) => {
                 warn!(
                     "gRPC stream {} error: {}, reconnecting in {:?}",
diff --git a/infra/k8s/services/api-gateway.yaml b/infra/k8s/services/api-gateway.yaml
index c98110a89..21af499c1 100644
--- a/infra/k8s/services/api-gateway.yaml
+++ b/infra/k8s/services/api-gateway.yaml
@@ -114,6 +114,8 @@ spec:
               value: "http://trading-agent-service:50055"
             - name: RUST_LOG
               value: info
+            - name: OTEL_EXPORTER_OTLP_ENDPOINT
+              value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
diff --git a/infra/k8s/services/backtesting-service.yaml b/infra/k8s/services/backtesting-service.yaml
index 7ba4a7500..73815da70 100644
--- a/infra/k8s/services/backtesting-service.yaml
+++ b/infra/k8s/services/backtesting-service.yaml
@@ -108,16 +108,12 @@ spec:
               value: "placeholder"
             - name: RUST_LOG
               value: info
-            - name: LOG_DIR
-              value: /app/logs
             - name: OTEL_EXPORTER_OTLP_ENDPOINT
               value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
               readOnly: true
-            - name: logs
-              mountPath: /app/logs
           readinessProbe:
             httpGet:
               path: /health
@@ -145,8 +141,6 @@ spec:
         - name: binary-cache
           persistentVolumeClaim:
             claimName: binary-cache-backtesting-service
-        - name: logs
-          emptyDir: {}
 ---
 apiVersion: v1
 kind: Service
diff --git a/infra/k8s/services/broker-gateway.yaml b/infra/k8s/services/broker-gateway.yaml
index 7f1067d71..bba74d6f7 100644
--- a/infra/k8s/services/broker-gateway.yaml
+++ b/infra/k8s/services/broker-gateway.yaml
@@ -117,6 +117,8 @@ spec:
                   key: account-id
             - name: RUST_LOG
               value: info
+            - name: OTEL_EXPORTER_OTLP_ENDPOINT
+              value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
diff --git a/infra/k8s/services/data-acquisition-service.yaml b/infra/k8s/services/data-acquisition-service.yaml
index fb303a5a2..5dbbd37fe 100644
--- a/infra/k8s/services/data-acquisition-service.yaml
+++ b/infra/k8s/services/data-acquisition-service.yaml
@@ -101,6 +101,8 @@ spec:
               value: "50057"
             - name: RUST_LOG
               value: info
+            - name: OTEL_EXPORTER_OTLP_ENDPOINT
+              value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
diff --git a/infra/k8s/services/ml-training-service-gpu.yaml b/infra/k8s/services/ml-training-service-gpu.yaml
index 4f8b220db..848b0971f 100644
--- a/infra/k8s/services/ml-training-service-gpu.yaml
+++ b/infra/k8s/services/ml-training-service-gpu.yaml
@@ -120,8 +120,6 @@ spec:
               value: "true"
             - name: RUST_LOG
               value: info
-            - name: LOG_DIR
-              value: /app/logs
             - name: OTEL_EXPORTER_OTLP_ENDPOINT
               value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
@@ -131,8 +129,6 @@ spec:
             - name: tls-certs
               mountPath: /app/certs/ml_training_service
               readOnly: true
-            - name: logs
-              mountPath: /app/logs
           readinessProbe:
             tcpSocket:
               port: 50053
@@ -163,5 +159,4 @@ spec:
         - name: tls-certs
           secret:
             secretName: ml-training-tls
-        - name: logs
-          emptyDir: {}
+
diff --git a/infra/k8s/services/ml-training-service.yaml b/infra/k8s/services/ml-training-service.yaml
index ed501a1b1..600a91d3d 100644
--- a/infra/k8s/services/ml-training-service.yaml
+++ b/infra/k8s/services/ml-training-service.yaml
@@ -165,8 +165,6 @@ spec:
                   optional: true
             - name: RUST_LOG
               value: info
-            - name: LOG_DIR
-              value: /app/logs
             - name: OTEL_EXPORTER_OTLP_ENDPOINT
               value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
@@ -176,8 +174,6 @@ spec:
             - name: tls-certs
               mountPath: /app/certs/ml_training_service
               readOnly: true
-            - name: logs
-              mountPath: /app/logs
           readinessProbe:
             tcpSocket:
               port: 50053
@@ -206,8 +202,6 @@ spec:
         - name: tls-certs
           secret:
             secretName: ml-training-tls
-        - name: logs
-          emptyDir: {}
 ---
 apiVersion: v1
 kind: Service
diff --git a/infra/k8s/services/trading-agent-service.yaml b/infra/k8s/services/trading-agent-service.yaml
index 869c5bb22..556ffbf98 100644
--- a/infra/k8s/services/trading-agent-service.yaml
+++ b/infra/k8s/services/trading-agent-service.yaml
@@ -106,6 +106,8 @@ spec:
               value: foxhunt-services
             - name: RUST_LOG
               value: info
+            - name: OTEL_EXPORTER_OTLP_ENDPOINT
+              value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
diff --git a/infra/k8s/services/trading-service-gpu.yaml b/infra/k8s/services/trading-service-gpu.yaml
index 69d5aa58a..092f62b7b 100644
--- a/infra/k8s/services/trading-service-gpu.yaml
+++ b/infra/k8s/services/trading-service-gpu.yaml
@@ -123,8 +123,6 @@ spec:
             - name: binaries
               mountPath: /binaries
               readOnly: true
-            - name: logs
-              mountPath: /app/logs
           readinessProbe:
             exec:
               command:
@@ -148,5 +146,4 @@ spec:
         - name: binary-cache
           persistentVolumeClaim:
             claimName: binary-cache-trading-service
-        - name: logs
-          emptyDir: {}
+
diff --git a/infra/k8s/services/trading-service.yaml b/infra/k8s/services/trading-service.yaml
index 277964bb3..a18cf3126 100644
--- a/infra/k8s/services/trading-service.yaml
+++ b/infra/k8s/services/trading-service.yaml
@@ -121,16 +121,12 @@ spec:
               value: "50051"
             - name: RUST_LOG
               value: info
-            - name: LOG_DIR
-              value: /app/logs
             - name: OTEL_EXPORTER_OTLP_ENDPOINT
               value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries
               readOnly: true
-            - name: logs
-              mountPath: /app/logs
           readinessProbe:
             exec:
               command:
@@ -160,8 +156,6 @@ spec:
         - name: binary-cache
           persistentVolumeClaim:
             claimName: binary-cache-trading-service
-        - name: logs
-          emptyDir: {}
 ---
 apiVersion: v1
 kind: Service
diff --git a/infra/k8s/services/web-gateway.yaml b/infra/k8s/services/web-gateway.yaml
index 7fd9cf82e..7661b1433 100644
--- a/infra/k8s/services/web-gateway.yaml
+++ b/infra/k8s/services/web-gateway.yaml
@@ -106,6 +106,8 @@ spec:
               value: "http://api-gateway:50051"
             - name: RUST_LOG
               value: info
+            - name: OTEL_EXPORTER_OTLP_ENDPOINT
+              value: "http://tempo.foxhunt.svc.cluster.local:4317"
           volumeMounts:
             - name: binaries
               mountPath: /binaries