diff --git a/cognee/api/.env.example b/.env.example
similarity index 75%
rename from cognee/api/.env.example
rename to .env.example
index ad08f6e4e..8a1f9830d 100644
--- a/cognee/api/.env.example
+++ b/.env.example
@@ -3,3 +3,7 @@
 # CORS_ALLOWED_ORIGINS="https://yourdomain.com,https://another.com"
 # For local development, you might use:
 # CORS_ALLOWED_ORIGINS="http://localhost:3000"
+
+LLM_API_KEY="your-openai-api-key"
+LLM_MODEL="openai/gpt-4o-mini"
+LLM_PROVIDER="openai"
diff --git a/.github/pull_request_template.md b/.github/pull_request_template.md
index be9d219c1..4bd15a4ad 100644
--- a/.github/pull_request_template.md
+++ b/.github/pull_request_template.md
@@ -29,7 +29,7 @@ DO NOT use AI-generated descriptions. We want to understand your thought process
 
 ## Pre-submission Checklist
 <!-- Please check all boxes that apply before submitting your PR -->
-- [ ] **I have tested my changes thoroughly before submitting this PR**
+- [ ] **I have tested my changes thoroughly before submitting this PR** (See `CONTRIBUTING.md`)
 - [ ] **This PR contains minimal changes necessary to address the issue/feature**
 - [ ] My code follows the project's coding standards and style guidelines
 - [ ] I have added tests that prove my fix is effective or that my feature works
diff --git a/.github/workflows/pre_test.yml b/.github/workflows/pre_test.yml
index 115313eac..912dc7bc7 100644
--- a/.github/workflows/pre_test.yml
+++ b/.github/workflows/pre_test.yml
@@ -5,7 +5,7 @@ permissions:
   contents: read
 jobs:
   check-uv-lock:
-    name: Validate uv lockfile and project metadata
+    name: Lockfile and Pre-commit Hooks
     runs-on: ubuntu-22.04
     steps:
       - name: Check out repository
@@ -20,3 +20,6 @@ jobs:
 
       - name: Validate uv lockfile and project metadata
         run: uv lock --check || { echo "'uv lock --check' failed."; echo "Run 'uv lock' and push your changes."; exit 1; }
+
+      - name: Run pre-commit hooks
+        uses: pre-commit/action@v3.0.1
diff --git a/.gitignore b/.gitignore
index ff42efc97..3d7d33d3c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -147,6 +147,7 @@ venv/
 ENV/
 env.bak/
 venv.bak/
+mise.toml
 
 # Spyder project settings
 .spyderproject
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 2e8ed4aa9..3a810733b 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -62,6 +62,11 @@ Looking for a place to start? Try filtering for [good first issues](https://gith
 
 ## 2. 🛠️ Development Setup
 
+### Required tools
+* [Python](https://www.python.org/downloads/)
+* [uv](https://docs.astral.sh/uv/getting-started/installation/)
+* pre-commit: `uv run pip install pre-commit && pre-commit install`
+
 ### Fork and Clone
 
 1. Fork the [**cognee**](https://github.com/topoteretes/cognee) repository
@@ -93,29 +98,31 @@ git checkout -b feature/your-feature-name
 4. **Commits**: Write clear commit messages
 
 ### Running Tests
+
+Rename `.env.example` into `.env` and provide your OPENAI_API_KEY as LLM_API_KEY
+
 ```shell
-python cognee/cognee/tests/test_library.py
+uv run python cognee/tests/test_library.py
 ```
 
 ### Running Simple Example
 
-Change .env.example into .env and provide your OPENAI_API_KEY as LLM_API_KEY
+Rename `.env.example` into `.env` and provide your OPENAI_API_KEY as LLM_API_KEY
 
 Make sure to run ```shell uv sync ``` in the root cloned folder or set up a virtual environment to run cognee
 
 ```shell
-python cognee/cognee/examples/python/simple_example.py
+python examples/python/simple_example.py
 ```
 or
 
 ```shell
-uv run python cognee/cognee/examples/python/simple_example.py
+uv run python examples/python/simple_example.py
 ```
 
 ## 4. 📤 Submitting Changes
 
-1. Install ruff on your system
-2. Run ```ruff format .``` and ``` ruff check ``` and fix the issues
+1. Make sure that `pre-commit` and hooks are installed. See `Required tools` section for more information. Try executing `pre-commit run` if you are not sure.
 3. Push your changes:
 ```shell
 git add .