Document .env discovery improvements

[EricGustin]

Documentation for ArcadeAI/arcade-mcp#737

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Note

Highlights recent improvements to environment discovery and configuration.

• Move .env.example to project root and instruct creating .env at root; adjust example mv commands accordingly
• Clarify that Arcade automatically discovers .env files by traversing upward from the current directory; add guidance that root placement works from subdirectories
• Update deploy logs text to "Searching for .env file..." to reflect new behavior
• Add reference docs for arcade_mcp_server.settings.find_env_file() with parameters, return, and examples
• Expand MCPSettings.from_env() docs to note automatic upward .env discovery and override=False
• Minor wording/consistency tweaks around "Environment Integration" and callouts mentioning upward search

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Project	Deployment	Review	Updated (UTC)
docs	Ready	Preview, Comment	Jan 5, 2026 6:16pm

[vfanelle]

@ArcadeAI/engineering can someone stamp this?

[evantahler]

@EricGustin approved assuming this is still valid!

[EricGustin]

It's still valid, but I need to get back around to addressing a comment on the code PR. Changing this to DRAFT for now