diff --git a/common/src/buttercup/common/llm.py b/common/src/buttercup/common/llm.py
index db9ae0c7..d2a68e35 100644
--- a/common/src/buttercup/common/llm.py
+++ b/common/src/buttercup/common/llm.py
@@ -133,9 +133,17 @@ def create_default_llm_with_temperature(**kwargs: Any) -> Runnable:
 
 
 def create_llm(**kwargs: Any) -> BaseChatModel:
-    """Create an LLM object with the given configuration."""
+    """Create an LLM object with the given configuration.
+
+    Prefer ``LITELLM_API_KEY`` (the per-deployment budgeted virtual key created
+    by litellm-user-keys-setup / the k8s key Job) over ``BUTTERCUP_LITELLM_KEY``.
+    ``BUTTERCUP_LITELLM_KEY`` is the litellm *master* key, which bypasses all
+    budget/rate enforcement, so using it directly makes ``LITELLM_MAX_BUDGET``
+    ineffective. Fall back to it only when no budgeted key is provided.
+    """
+    api_key = os.environ.get("LITELLM_API_KEY") or os.environ["BUTTERCUP_LITELLM_KEY"]
     return ChatOpenAI(
         openai_api_base=os.environ["BUTTERCUP_LITELLM_HOSTNAME"],
-        openai_api_key=SecretStr(os.environ["BUTTERCUP_LITELLM_KEY"]),
+        openai_api_key=SecretStr(api_key),
         **kwargs,
     )
diff --git a/dev/docker-compose/env.template b/dev/docker-compose/env.template
index 221b9892..91e7ef7c 100644
--- a/dev/docker-compose/env.template
+++ b/dev/docker-compose/env.template
@@ -2,6 +2,11 @@
 
 # LiteLLM variables
 BUTTERCUP_LITELLM_KEY=sk-1234
+# Max spend (USD) enforced on the generated llm-user LiteLLM key. Once the
+# cumulative spend on that key exceeds this value, LiteLLM rejects further
+# requests. Picked up by compose interpolation in compose.yaml; defaults to 100
+# if unset. Kept low here to cap spend during local development.
+LITELLM_MAX_BUDGET=15
 # You only need to change variables for APIs you will use, but you need all these variables set
 ANTHROPIC_API_KEY=<INSERT_KEY>
 AZURE_API_BASE=<INSERT_HOST>