diff --git a/docs/my-website/docs/proxy/ui_team_soft_budget_alerts.md b/docs/my-website/docs/proxy/ui_team_soft_budget_alerts.md
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+++ b/docs/my-website/docs/proxy/ui_team_soft_budget_alerts.md
@@ -0,0 +1,130 @@
+import Image from '@theme/IdealImage';
+
+# Team Soft Budget Alerts
+
+Set a soft budget on a team and get email alerts when spending crosses the threshold — without blocking any requests.
+
+## Overview
+
+A **soft budget** is a spending threshold that triggers email notifications when exceeded, but **does not block requests**. This is different from a hard budget (`max_budget`), which rejects requests once the limit is reached.
+
+
+
+Team soft budget alerts let you:
+
+- **Get notified early** — receive email alerts when a team's spend crosses the soft budget threshold
+- **Keep requests flowing** — unlike hard budgets, soft budgets never block API calls
+- **Target specific recipients** — send alerts to specific email addresses (e.g. team leads, finance), not just the team members
+- **Work without global alerting** — team soft budget alerts are sent via email independently of Slack or other global alerting configuration
+
+:::warning Email integration required
+Team soft budget alerts are sent via email. You must have an active email integration (SendGrid, Resend, or SMTP) configured on your proxy for alerts to be delivered. See [Email Notifications](./email.md) for setup instructions.
+:::
+
+:::info Automatically active
+Team soft budget alerts are **automatically active** once you configure a soft budget and at least one alerting email on a team. No additional proxy configuration or restart is needed — alerts are checked on every request.
+:::
+
+## How It Works
+
+On every API request made with a key belonging to a team, the proxy checks:
+
+1. Does the team have a `soft_budget` set?
+2. Is the team's current `spend` >= the `soft_budget`?
+3. Are there any emails configured in `soft_budget_alerting_emails`?
+
+If all three conditions are met, an email alert is sent to the configured recipients. Alerts are **deduplicated** so the same alert is only sent once within a 24-hour window.
+
+## How to Set Up Team Soft Budget Alerts
+
+### 1. Navigate to the Admin UI
+
+Go to the Admin UI (e.g. `http://localhost:4000/ui` or your `PROXY_BASE_URL/ui`).
+
+
+
+### 2. Go to Teams
+
+Click **Teams** in the sidebar.
+
+
+
+### 3. Select a team
+
+Click on the team you want to configure soft budget alerts for.
+
+
+
+### 4. Open team Settings
+
+Click the **Settings** tab to view the team's configuration.
+
+
+
+### 5. Edit Settings
+
+Click **Edit Settings** to modify the team's budget configuration.
+
+
+
+### 6. Set the Soft Budget
+
+Click the **Soft Budget (USD)** field and enter your desired threshold. For example, enter `0.01` for testing or a higher value like `500` for production.
+
+
+
+### 7. Add alerting emails
+
+Click the **Soft Budget Alerting Emails** field and enter one or more comma-separated email addresses that should receive the alert.
+
+
+
+### 8. Save Changes
+
+Click **Save Changes**. The soft budget alert is now active — no proxy restart required.
+
+
+
+### 9. Verify: email alert received
+
+Once the team's spend crosses the soft budget, an email alert is sent to the configured recipients. Below is an example of the alert email:
+
+
+
+## Settings Reference
+
+| Setting | Description |
+| ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- |
+| **Soft Budget (USD)** | The spending threshold that triggers an email alert. Requests are **not** blocked when this limit is exceeded. |
+| **Soft Budget Alerting Emails** | Comma-separated email addresses that receive the alert when the soft budget is crossed. At least one email is required for alerts to be sent. |
+
+:::tip Soft Budget vs. Max Budget
+
+- **Soft Budget**: Advisory threshold — sends email alerts but does **not** block requests.
+- **Max Budget**: Hard limit — blocks requests once the budget is exceeded.
+
+You can set both on the same team to get early warnings (soft) and a hard stop (max).
+:::
+
+## API Configuration
+
+You can also configure team soft budgets via the API when creating or updating a team:
+
+```bash
+curl -X POST 'http://localhost:4000/team/update' \
+ --header 'Authorization: Bearer sk-1234' \
+ --header 'Content-Type: application/json' \
+ --data '{
+ "team_id": "your-team-id",
+ "soft_budget": 500.00,
+ "metadata": {
+ "soft_budget_alerting_emails": ["lead@example.com", "finance@example.com"]
+ }
+ }'
+```
+
+## Related Documentation
+
+- [Email Notifications](./email.md) – Configure email integrations (Resend, SMTP) for LiteLLM Proxy
+- [Alerting](./alerting.md) – Set up Slack and other alerting channels
+- [Cost Tracking](./cost_tracking.md) – Track and manage spend across teams, keys, and users
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diff --git a/docs/my-website/release_notes/v1.81.9.md b/docs/my-website/release_notes/v1.81.9.md
index 966a5dd5f32..a132e0c54e1 100644
--- a/docs/my-website/release_notes/v1.81.9.md
+++ b/docs/my-website/release_notes/v1.81.9.md
@@ -45,6 +45,7 @@ pip install litellm==1.81.9
- **Claude Opus 4.6** - [Full support across Anthropic, AWS Bedrock, Azure AI, and Vertex AI with adaptive thinking and 1M context window](../../blog/claude_opus_4_6)
- **A2A Agent Gateway** - [Call A2A (Agent-to-Agent) registered agents through the standard `/chat/completions` API](../../docs/a2a_invoking_agents)
- **Expose MCP servers on the public internet** - [Launch MCP servers with public/private visibility and IP-based access control for internet-facing deployments](../../docs/mcp_public_internet)
+- **UI Team Soft Budget Alerts** - [Set soft budgets on teams and receive email alerts when spending crosses the threshold — without blocking requests](../../docs/proxy/ui_team_soft_budget_alerts)
- **Performance Optimizations** - Multiple performance improvements including ~40% Prometheus CPU reduction, LRU caching, and optimized logging paths
---
@@ -60,6 +61,17 @@ img={require('../img/release_notes/mcp_internet.png')}
style={{ maxWidth: '900px', width: '100%' }}
/>
+## UI Team Soft Budget Alerts
+
+Set a soft budget on any team to receive email alerts when spending crosses the threshold — without blocking any requests. Configure the threshold and alerting emails directly from the Admin UI, with no proxy restart needed.
+
+[Get started](../../docs/proxy/ui_team_soft_budget_alerts)
+
+
+
Let's dive in.
---
diff --git a/docs/my-website/sidebars.js b/docs/my-website/sidebars.js
index 545d46f7f37..29911bf656d 100644
--- a/docs/my-website/sidebars.js
+++ b/docs/my-website/sidebars.js
@@ -368,6 +368,7 @@ const sidebars = {
items: [
"proxy/users",
"proxy/team_budgets",
+ "proxy/ui_team_soft_budget_alerts",
"proxy/tag_budgets",
"proxy/customers",
"proxy/dynamic_rate_limit",