Nested · Diagram Design
How Claude Code composes context from every folder level above. Each outer ring is a broader scope; the innermost box is where the work happens — inheriting every instruction above it without a single import statement.
THE HEADLINE
Every CLAUDE.md inside a parent folder implicitly wraps the one below. No manifest, no import graph — the file tree itself declares scope, so renaming a folder is the only migration you'll ever run.
Past five rings the diagram stops teaching — and so does the filesystem. If you need six levels of instruction, you probably need two projects instead.