diff --git a/docs/specification/overview.md b/docs/specification/overview.md
index 452e7a5b7..b7ddc0286 100644
--- a/docs/specification/overview.md
+++ b/docs/specification/overview.md
@@ -2236,10 +2236,14 @@ Both businesses and platforms declare a single version in their profiles:
 
 ![High-level resolution flow sequence diagram](site:specification/images/ucp-discovery-negotiation.png)
 
-Version compatibility operates at two levels: the **protocol version**
-and **capability versions**. The protocol version (`ucp.version`)
-governs core protocol mechanisms — discovery, negotiation flow,
-transport bindings, and signature requirements. Capability versions
+Version compatibility operates at three layers — **transport bindings**,
+the **core protocol**, and **capability versions** — each evolving on its
+own cadence (see [Versioning](/versioning/#layered-versioning) for the
+layer model). The protocol version (`ucp.version`) governs the
+cross-cutting mechanisms shared by every transport binding: discovery,
+negotiation flow, signature requirements, profile structure, and the
+error envelope. Each service entry declares its own `version` and **MAY**
+evolve independently of the core protocol cadence. Capability versions
 govern the semantics of each feature independently, as defined in
 [Independent Component Versioning](#independent-component-versioning).
 
@@ -2367,10 +2371,12 @@ support for multiple versions of that capability. The capability
 intersection algorithm considers only capability versions supported
 by both parties.
 
-Businesses **MUST** include only capabilities compatible with the
-negotiated protocol version in their response. A capability that
-depends on features introduced in a newer protocol version **MUST
-NOT** be included when processing at an older protocol version.
+> [!IMPORTANT]
+> **Protocol Compatibility Constraint:**
+> Businesses **MUST** include only capabilities compatible with the
+> negotiated protocol version in their response. A capability that
+> depends on features introduced in a newer protocol version
+> **MUST NOT** be included when processing at an older protocol version.
 
 ### Backwards Compatibility
 
@@ -2405,7 +2411,8 @@ The following changes **MUST NOT** be introduced without a new version:
 - Capabilities **MUST** follow the same backwards compatibility rules as the
     protocol.
 - Businesses **MUST** validate capability version compatibility using the same
-    logic as what's described above.
+    negotiation logic described in [Protocol Version](#protocol-version) and
+    [Version Negotiation](#version-negotiation).
 - Transports **MAY** define their own version handling mechanisms.
 
 #### UCP Capabilities (`dev.ucp.*`)
diff --git a/docs/versioning.md b/docs/versioning.md
index 5366b5017..a73a90094 100644
--- a/docs/versioning.md
+++ b/docs/versioning.md
@@ -1,7 +1,36 @@
 # Versioning
 
 UCP uses date-based version identifiers following the format `YYYY-MM-DD` to
-indicate the last date backwards incompatible changes were made.
+indicate the last date backwards-incompatible changes were made to a given
+component.
+
+## Layered Versioning
+
+UCP versions three layers independently. Each layer evolves on its own
+cadence and is negotiated by its own mechanism:
+
+1. **Transport bindings.** Each service entry — REST, MCP, A2A, or
+    embedded — declares its own `version`. The wire contract for each
+    transport lives in the OpenAPI / OpenRPC / Agent Card document referenced
+    from the service entry's `schema` field. Transports **MAY** evolve their
+    version handling independently from the core protocol release.
+2. **Core protocol** (`ucp.version`). Governs the cross-cutting mechanisms
+    every transport binding inherits: discovery, negotiation flow, signature
+    requirements, profile structure, and the error envelope. Validated as a
+    pre-negotiation gate; mismatch returns `version_unsupported`.
+3. **Capabilities and extensions.** Each capability entry declares its own
+    `version`, and each extension that augments a capability versions
+    independently. Capability versions are intersected at negotiation; the
+    highest mutual version wins, and extensions **MAY** declare
+    `requires.protocol` and `requires.capabilities` constraints that further
+    filter the active set.
+
+For the negotiation algorithm and version-compatibility rules, see
+[Version Negotiation](specification/overview.md#version-negotiation) and
+[Independent Component Versioning](specification/overview.md#independent-component-versioning)
+in the Architecture Overview.
+
+## Release Process
 
 New development occurs on the `main` branch. We will maintain long-lived
 branches for all supported releases of the spec.