diff --git a/crates/lanspread-peer/src/launch_settings.rs b/crates/lanspread-peer/src/launch_settings.rs
index 718e4b9..2ac02b2 100644
--- a/crates/lanspread-peer/src/launch_settings.rs
+++ b/crates/lanspread-peer/src/launch_settings.rs
@@ -15,11 +15,13 @@
 
 use std::{
     ffi::OsStr,
-    io::ErrorKind,
+    io::{ErrorKind, Read as _},
     path::{Path, PathBuf},
+    time::{Duration, Instant},
 };
 
 use eyre::WrapErr;
+use lanspread_db::content_manifest::{MAX_CATALOG_ENTRIES, MAX_CATALOG_PATH_BYTES};
 
 use crate::{
     game_paths::LOCAL_DIR,
@@ -34,6 +36,67 @@ const PERSONA_NAME_KEY: &str = "PersonaName";
 const DEFAULT_STREAM_INSTALL_NAME: &str = "Commander";
 const DEFAULT_STREAM_INSTALL_LANGUAGE: &str = "english";
 const MAX_STREAM_INSTALL_NAME_CHARS: usize = 24;
+const MAX_LAUNCH_SETTINGS_FILE_BYTES: u64 = 1024 * 1024;
+const MAX_LAUNCH_SETTINGS_ENTRIES: usize = MAX_CATALOG_ENTRIES;
+const MAX_LAUNCH_SETTINGS_DEPTH: usize = MAX_CATALOG_PATH_BYTES.div_ceil(2);
+const MAX_LAUNCH_SETTINGS_SCAN_DURATION: Duration = Duration::from_mins(10);
+
+#[derive(Clone, Copy)]
+struct SearchLimits {
+    entry_cap: usize,
+    depth_ceiling: usize,
+    time_budget: Duration,
+}
+
+impl SearchLimits {
+    const PRODUCTION: Self = Self {
+        entry_cap: MAX_LAUNCH_SETTINGS_ENTRIES,
+        depth_ceiling: MAX_LAUNCH_SETTINGS_DEPTH,
+        time_budget: MAX_LAUNCH_SETTINGS_SCAN_DURATION,
+    };
+}
+
+struct SearchBudget {
+    limits: SearchLimits,
+    entries: usize,
+    started: Instant,
+}
+
+impl SearchBudget {
+    fn new(limits: SearchLimits) -> Self {
+        Self {
+            limits,
+            entries: 0,
+            started: Instant::now(),
+        }
+    }
+
+    fn charge(&mut self, depth: usize) -> eyre::Result<()> {
+        self.entries = self
+            .entries
+            .checked_add(1)
+            .ok_or_else(|| eyre::eyre!("launch-settings entry count overflow"))?;
+        if self.entries > self.limits.entry_cap {
+            eyre::bail!(
+                "launch-settings search exceeds the {}-entry budget",
+                self.limits.entry_cap
+            );
+        }
+        if depth > self.limits.depth_ceiling {
+            eyre::bail!(
+                "launch-settings search exceeds the {}-component depth budget",
+                self.limits.depth_ceiling
+            );
+        }
+        if self.started.elapsed() >= self.limits.time_budget {
+            eyre::bail!(
+                "launch-settings search exceeds the {:?} scan-time budget",
+                self.limits.time_budget
+            );
+        }
+        Ok(())
+    }
+}
 
 /// Sanitized per-user values applied inside a verified Stream Install staging tree.
 #[derive(Clone, Debug, Eq, PartialEq)]
@@ -209,58 +272,74 @@ fn apply_launch_settings_to_tree_blocking(
     language: Option<&str>,
     persona_name: Option<&str>,
 ) -> eyre::Result<LaunchSettingsOutcome> {
+    if account_name.is_none() && language.is_none() && persona_name.is_none() {
+        return Ok(LaunchSettingsOutcome::default());
+    }
+    let mut budget = SearchBudget::new(SearchLimits::PRODUCTION);
+    let SettingsCandidates {
+        account_names,
+        languages,
+        persona_files,
+    } = find_settings_candidates(local_root, &mut budget)?;
+    let account_path = account_name.and(account_names.into_iter().next());
+    let language_path = language.and(languages.into_iter().next());
+    let persona_update = if let Some(persona_name) = persona_name {
+        let mut update = None;
+        for path in persona_files {
+            let content = read_bounded_settings_file(&path)?;
+            if let Some(rewritten) = rewrite_persona_name_content(&content, persona_name) {
+                update = Some((path, rewritten));
+                break;
+            }
+        }
+        update
+    } else {
+        None
+    };
+
+    // Finish all bounded traversal and input reads before the first write. A
+    // budget failure therefore cannot leave only a prefix of the settings set
+    // updated or mark that partial attempt as complete.
+    if let (Some(path), Some(value)) = (&account_path, account_name) {
+        std::fs::write(path, value)
+            .wrap_err_with(|| format!("failed to write {}", path.display()))?;
+    }
+    if let (Some(path), Some(value)) = (&language_path, language) {
+        std::fs::write(path, value)
+            .wrap_err_with(|| format!("failed to write {}", path.display()))?;
+    }
+    if let Some((path, rewritten)) = &persona_update {
+        std::fs::write(path, rewritten)
+            .wrap_err_with(|| format!("failed to write {}", path.display()))?;
+    }
+
     Ok(LaunchSettingsOutcome {
         already_applied: false,
-        account_name_written: overwrite_first_file(local_root, ACCOUNT_NAME_FILE, account_name)?,
-        language_written: overwrite_first_file(local_root, LANGUAGE_FILE, language)?,
-        persona_name_written: rewrite_first_persona_name(local_root, persona_name)?,
+        account_name_written: account_path.is_some(),
+        language_written: language_path.is_some(),
+        persona_name_written: persona_update.is_some(),
     })
 }
 
-/// Overwrite the first file named `file_name` under `root` with `value`.
-///
-/// Returns `false` without touching anything when `value` is `None` or no such
-/// file exists.
-fn overwrite_first_file(root: &Path, file_name: &str, value: Option<&str>) -> eyre::Result<bool> {
-    let Some(value) = value else {
-        return Ok(false);
-    };
-    let Some(path) = find_first_file(root, file_name)? else {
-        return Ok(false);
-    };
-
-    std::fs::write(&path, value).wrap_err_with(|| format!("failed to write {}", path.display()))?;
-    Ok(true)
+#[derive(Debug, Default)]
+struct SettingsCandidates {
+    account_names: Vec<PathBuf>,
+    languages: Vec<PathBuf>,
+    persona_files: Vec<PathBuf>,
 }
 
-/// Rewrite the first `PersonaName` line found in any `SmartSteamEmu.ini` under `root`.
-fn rewrite_first_persona_name(root: &Path, persona_name: Option<&str>) -> eyre::Result<bool> {
-    let Some(persona_name) = persona_name else {
-        return Ok(false);
-    };
-
-    for path in find_files(root, SMART_STEAM_EMU_INI)? {
-        let content = std::fs::read_to_string(&path)
-            .wrap_err_with(|| format!("failed to read {}", path.display()))?;
-        let Some(rewritten) = rewrite_persona_name_content(&content, persona_name) else {
-            continue;
-        };
-
-        std::fs::write(&path, rewritten)
-            .wrap_err_with(|| format!("failed to write {}", path.display()))?;
-        return Ok(true);
-    }
-
-    Ok(false)
-}
-
-/// Find the first regular file named `file_name` anywhere under `root`.
+/// Find every launcher-setting candidate in one bounded traversal.
 ///
-/// A missing `root` (for example an uninstalled game with no `local/`) yields
-/// `None`. Directories are visited in sorted order for deterministic results.
-fn find_first_file(root: &Path, file_name: &str) -> eyre::Result<Option<PathBuf>> {
-    let mut pending_dirs = vec![root.to_path_buf()];
-    while let Some(dir) = pending_dirs.pop() {
+/// A missing `root` yields an empty set. Sorting complete relative paths keeps
+/// the former deterministic first-match behavior without walking a large tree
+/// three separate times.
+fn find_settings_candidates(
+    root: &Path,
+    budget: &mut SearchBudget,
+) -> eyre::Result<SettingsCandidates> {
+    let mut candidates = SettingsCandidates::default();
+    let mut pending_dirs = vec![(root.to_path_buf(), 0_usize)];
+    while let Some((dir, depth)) = pending_dirs.pop() {
         let entries = match std::fs::read_dir(&dir) {
             Ok(entries) => entries,
             Err(err) if err.kind() == ErrorKind::NotFound => continue,
@@ -272,12 +351,21 @@ fn find_first_file(root: &Path, file_name: &str) -> eyre::Result<Option<PathBuf>
         let mut child_dirs = Vec::new();
         for entry in entries {
             let entry = entry?;
+            let child_depth = depth.saturating_add(1);
+            budget.charge(child_depth)?;
             let file_type = entry.file_type()?;
             let path = entry.path();
             if file_type.is_dir() {
-                child_dirs.push(path);
-            } else if file_type.is_file() && entry.file_name() == OsStr::new(file_name) {
-                return Ok(Some(path));
+                child_dirs.push((path, child_depth));
+            } else if file_type.is_file() {
+                let name = entry.file_name();
+                if name == OsStr::new(ACCOUNT_NAME_FILE) {
+                    candidates.account_names.push(path);
+                } else if name == OsStr::new(LANGUAGE_FILE) {
+                    candidates.languages.push(path);
+                } else if name == OsStr::new(SMART_STEAM_EMU_INI) {
+                    candidates.persona_files.push(path);
+                }
             }
         }
 
@@ -286,43 +374,41 @@ fn find_first_file(root: &Path, file_name: &str) -> eyre::Result<Option<PathBuf>
         pending_dirs.extend(child_dirs);
     }
 
-    Ok(None)
+    candidates.account_names.sort();
+    candidates.languages.sort();
+    candidates.persona_files.sort();
+    Ok(candidates)
 }
 
-/// Find every regular file named `file_name` anywhere under `root`.
-///
-/// A missing `root` yields an empty list. Directories are visited in sorted
-/// order for deterministic results.
-fn find_files(root: &Path, file_name: &str) -> eyre::Result<Vec<PathBuf>> {
-    let mut matches = Vec::new();
-    let mut pending_dirs = vec![root.to_path_buf()];
-    while let Some(dir) = pending_dirs.pop() {
-        let entries = match std::fs::read_dir(&dir) {
-            Ok(entries) => entries,
-            Err(err) if err.kind() == ErrorKind::NotFound => continue,
-            Err(err) => {
-                return Err(err).wrap_err_with(|| format!("failed to read {}", dir.display()));
-            }
-        };
-
-        let mut child_dirs = Vec::new();
-        for entry in entries {
-            let entry = entry?;
-            let file_type = entry.file_type()?;
-            let path = entry.path();
-            if file_type.is_dir() {
-                child_dirs.push(path);
-            } else if file_type.is_file() && entry.file_name() == OsStr::new(file_name) {
-                matches.push(path);
-            }
-        }
-
-        child_dirs.sort();
-        child_dirs.reverse();
-        pending_dirs.extend(child_dirs);
+fn read_bounded_settings_file(path: &Path) -> eyre::Result<String> {
+    let metadata = std::fs::symlink_metadata(path)
+        .wrap_err_with(|| format!("failed to inspect {}", path.display()))?;
+    if !metadata.is_file() || metadata.file_type().is_symlink() {
+        eyre::bail!(
+            "launch-settings input is not a regular file: {}",
+            path.display()
+        );
+    }
+    if metadata.len() > MAX_LAUNCH_SETTINGS_FILE_BYTES {
+        eyre::bail!(
+            "launch-settings input exceeds the {MAX_LAUNCH_SETTINGS_FILE_BYTES}-byte limit: {}",
+            path.display()
+        );
     }
 
-    Ok(matches)
+    let file =
+        std::fs::File::open(path).wrap_err_with(|| format!("failed to read {}", path.display()))?;
+    let mut content = String::new();
+    file.take(MAX_LAUNCH_SETTINGS_FILE_BYTES + 1)
+        .read_to_string(&mut content)
+        .wrap_err_with(|| format!("failed to read {}", path.display()))?;
+    if u64::try_from(content.len()).unwrap_or(u64::MAX) > MAX_LAUNCH_SETTINGS_FILE_BYTES {
+        eyre::bail!(
+            "launch-settings input exceeds the {MAX_LAUNCH_SETTINGS_FILE_BYTES}-byte limit: {}",
+            path.display()
+        );
+    }
+    Ok(content)
 }
 
 /// Rewrite the first `PersonaName` line in `content`, preserving its line ending.
@@ -698,6 +784,65 @@ mod tests {
         assert!(launch_settings_applied_path(state.path(), "game").is_file());
     }
 
+    #[test]
+    fn oversized_persona_file_fails_before_rewrite_or_marker() {
+        let state = TempDir::new("lanspread-launch-state");
+        let game = TempDir::new("lanspread-launch-game");
+        let account = game.path().join(LOCAL_DIR).join(ACCOUNT_NAME_FILE);
+        let ini = game.path().join(LOCAL_DIR).join(SMART_STEAM_EMU_INI);
+        write_file(&account, b"original-account");
+        write_file(&ini, b"PersonaName = original\n");
+        std::fs::OpenOptions::new()
+            .write(true)
+            .open(&ini)
+            .expect("INI should open")
+            .set_len(MAX_LAUNCH_SETTINGS_FILE_BYTES + 1)
+            .expect("INI should become oversized");
+
+        let error =
+            apply_launch_settings_once(state.path(), game.path(), "game", Some("realuser"), None)
+                .expect_err("oversized launch settings must fail closed");
+
+        assert!(error.to_string().contains("byte limit"));
+        assert!(!launch_settings_applied_path(state.path(), "game").exists());
+        assert_eq!(
+            std::fs::read_to_string(account).expect("account file should remain readable"),
+            "original-account",
+            "a later bounded-read failure must precede every settings write"
+        );
+        assert_eq!(
+            std::fs::metadata(&ini)
+                .expect("oversized INI should remain")
+                .len(),
+            MAX_LAUNCH_SETTINGS_FILE_BYTES + 1
+        );
+    }
+
+    #[test]
+    fn launch_settings_search_rejects_entry_and_depth_overflow() {
+        let tree = TempDir::new("lanspread-launch-budget");
+        write_file(&tree.path().join("a/one.txt"), b"one");
+        write_file(&tree.path().join("b/two.txt"), b"two");
+
+        let mut entry_budget = SearchBudget::new(SearchLimits {
+            entry_cap: 1,
+            depth_ceiling: MAX_LAUNCH_SETTINGS_DEPTH,
+            time_budget: MAX_LAUNCH_SETTINGS_SCAN_DURATION,
+        });
+        let entry_error = find_settings_candidates(tree.path(), &mut entry_budget)
+            .expect_err("a one-entry search budget must reject the second entry");
+        assert!(entry_error.to_string().contains("entry budget"));
+
+        let mut depth_budget = SearchBudget::new(SearchLimits {
+            entry_cap: 16,
+            depth_ceiling: 1,
+            time_budget: MAX_LAUNCH_SETTINGS_SCAN_DURATION,
+        });
+        let depth_error = find_settings_candidates(tree.path(), &mut depth_budget)
+            .expect_err("a one-component search budget must reject nested entries");
+        assert!(depth_error.to_string().contains("depth budget"));
+    }
+
     fn write_file(path: &Path, bytes: &[u8]) {
         if let Some(parent) = path.parent() {
             std::fs::create_dir_all(parent).expect("parent dir should be created");