diff --git a/apps/server-core b/apps/server-core
index 127ba7e..c680474 160000
--- a/apps/server-core
+++ b/apps/server-core
@@ -1 +1 @@
-Subproject commit 127ba7ed99edfdb3a39b004158f378b67f339ef0
+Subproject commit c68047456e3e775031f00507076b20ebcc5cf5ea
diff --git a/docker-compose.yml b/docker-compose.yml
index b9b145d..cb05788 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -38,20 +38,11 @@ services:
       context: ./apps/server-core
       dockerfile: Dockerfile
     network_mode: host
+    env_file:
+      - .env
     environment:
       - DB_HOST=127.0.0.1
-      - DB_PORT=5432
-      - DB_USER=nexusguard
-      - DB_PASSWORD=${DB_PASSWORD:-nexusguard}
-      - DB_NAME=nexusguard
       - REDIS_ADDR=127.0.0.1:6379
-      - JWT_SECRET=${JWT_SECRET:-changeme}
-      - SERVER_SALT=${SERVER_SALT:-changeme}
-      - NFTABLES_TABLE=nexusguard
-      - IPAM_POOL=10.172.0.0/16
-      - GIN_MODE=release
-    volumes:
-      - ./nexusguard.conf:/etc/nexusguard/nexusguard.conf:ro
     depends_on:
       postgres:
         condition: service_healthy
diff --git a/nexusguard.conf.example b/nexusguard.conf.example
deleted file mode 100644
index 234398f..0000000
--- a/nexusguard.conf.example
+++ /dev/null
@@ -1,25 +0,0 @@
-# NexusGuard Server Configuration
-# This file is optional. Environment variables take precedence.
-# Format: export KEY=VALUE
-
-# Database
-# export DB_HOST=127.0.0.1
-# export DB_PORT=5432
-# export DB_USER=nexusguard
-# export DB_PASSWORD=nexusguard
-# export DB_NAME=nexusguard
-
-# Redis
-# export REDIS_ADDR=127.0.0.1:6379
-
-# Security
-# export JWT_SECRET=changeme
-# export SERVER_SALT=changeme
-
-# WireGuard
-# export NFTABLES_TABLE=nexusguard
-# export IPAM_POOL=10.172.0.0/16
-
-# Logging
-# export LOG_LEVEL=info
-# export GIN_MODE=release
diff --git a/setup.sh b/setup.sh
index a2852f2..e80afde 100755
--- a/setup.sh
+++ b/setup.sh
@@ -28,16 +28,7 @@ else
     echo "[+] .env file already exists. Skipping environment generation."
 fi
 
-# 2. Config file generation
-if [ ! -f nexusguard.conf ]; then
-    if [ -f nexusguard.conf.example ]; then
-        echo "[+] Auto-generating nexusguard.conf from nexusguard.conf.example..."
-        cp nexusguard.conf.example nexusguard.conf
-        echo "[+] Config file created. All settings are commented out (env vars take precedence)."
-    fi
-else
-    echo "[+] nexusguard.conf already exists. Skipping config generation."
-fi
+
 
 # Make sure Docker Compose v2 is available
 if ! docker compose version &> /dev/null; then