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Short answer

Cursor Rules tell Cursor how to work in a project. AGENTS.md is a repository instruction file many coding agents can read. .cursorignore controls which files or directories Cursor should not index or read. They all relate to project context, but they solve different problems: Rules guide behavior, AGENTS.md gives cross-agent instructions, and .cursorignore excludes content.

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Comparison

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Good content for Rules

  • Project coding style
  • Framework conventions
  • Component and directory rules
  • Test and validation requirements
  • Cursor editing behavior

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Good content for .cursorignore

  • Large build artifacts
  • Dependency directories
  • Generated files
  • Sensitive directories that should not be indexed
  • Large files unrelated to current development

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Common mistakes

  • Writing API Keys in Rules or AGENTS.md.
  • Treating .cursorignore as a complete security system.
  • Keeping outdated rules that mislead the AI.
  • Thinking Base URL configuration replaces project rules.
  • Mixing Cursor Rules with Claude Code CLAUDE.md.

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About BetterToken

BetterToken handles model API access and usage visibility. Cursor Rules, AGENTS.md, and .cursorignore handle project context and editing behavior. API access is only the first step. Long-term output quality depends heavily on clear rules and controlled context.

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References