Originally published at ReclaimLLM.

Cursor can receive your workspace path before any tool runs. How directory names enter context, and what to check before storing or sharing sessions.

What Cursor knows before your first tool call

Updated November 14, 2026.

An agent does not have to open a customer file to learn a customer name. If that name appears in the workspace's directory path, it may already be in the context supplied to the model.

That is a separate question from whether the agent can read outside the repository. A security review should examine both the information included when a chat starts and the permissions governing later tool calls.

For teams reviewing Cursor security, the first prompt deserves its own check.

A directory path can carry confidential context

Consider this fictional workspace:

/Users/alex/Clients/ExampleCo/acquisition-review/payments-api

The last directory identifies the repository. Its parents reveal a local account name, a client relationship and a possible business activity. None of that requires the model to inspect a source file.

In a November 12, 2026 Cursor staff reply, the team confirmed that a new chat receives the opened folder's absolute path. The reply also describes project-specific Cursor directories under the user's home folder entering context. Staff explained that tools use these paths to locate files and terminal output.

The important distinction is between knowing a location and having permission to access it. A model being told an absolute path does not establish that it can read every parent directory.

What to check before the first prompt

Item	What it means
Workspace path	A new chat can receive the opened folder's absolute path (Cursor forum, t/178134/5).
Project-specific Cursor directories	Those under the user's home folder can enter context.
.cursorignore	It controls tab and context indexing. It is not a DLP control. Use the rule above for exclusions.
.cursorrules and .cursor/rules	Cursor files that enter context when a session runs.
Chat and history settings	Privacy Mode, automatic indexing, and model training settings for the installation.
Session evidence	Reviewer and provider copies carry what was sent, unless redacted before upload.

A .cursorignore file tells Cursor which files to exclude from tab and context indexing. Read why .cursorignore is not DLP for the full explanation. Exclusion alone does not make a file confidential.

What the default does not do

Cursor's Data Use & Privacy Overview explains what Privacy Mode changes: the code remains on your machine, and it is not stored by Cursor or used for model training. Cursor says it provides the setting for privacy-conscious users. Check the linked page for the current definition and for any stated exceptions.

Exclusion and training are separate settings. Cursor's Data Use page distinguishes them. For a complete review, read the linked page directly and check both settings in the installation.

The key point is about location and disclosure. A workspace path is not source code, and a privacy setting aimed at source code may not describe the metadata that accompanies it. What matters is what the model or the reviewer receives when the chat starts.

Check before you store or share a session

1. Read the path aloud before sending the first prompt. Open a fresh chat in the repository you plan to use. Ask what it knows before any tool runs.
2. Compare the paths in an existing session. Open the chat context, then look at the paths listed. Check whether a parent directory name carries client or project detail.
3. Replace names that leak. Move the repository to a neutral folder, or rename parent directories that identify a client or project.
4. Use explicit rules for exclusions. Add the paths to the settings rules. Do not rely on .cursorignore for confidentiality.
5. Keep local-only files out of the repository. Keep customer records and credentials in their own encrypted vault, rather than in the repository.
6. Inspect the provider copy before keeping it. Open the reviewer's uploaded session and check whether a path or file name survives. That evidence matters more than the setting that should have excluded it.
7. Redact before upload where needed. Where local redaction before session upload is available, use it before the session leaves the machine. Set a date to repeat the check and a person responsible for it.

What to look at first

A practical starting point is the directory itself. Where does the repository sit on disk, and what do its parent names say about the owner, the client or the activity? Then check the installation settings, and add the paths to the settings rules. Where the vendor supplies a local check, such as rclm-update, use it before sending anything. What a prompt reveals is the risk to manage, not only what a tool call reads.

Check your workspace before your next prompt

Where does your workspace name appear in the file system? If the path can be quoted back to you, inspect it now. Then check the Privacy Mode, indexing and retention settings for the installation. A short check today prevents the context from reaching a reviewer or a model provider before you intended it to.

Review your Cursor security controls.

Read the original article at ReclaimLLM.