diff --git a/Dockerfile b/Dockerfile
index e5cae4650..65abb8f0c 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -64,8 +64,7 @@ ENV LETTA_ENVIRONMENT=${LETTA_ENVIRONMENT} \
     POSTGRES_USER=letta \
     POSTGRES_PASSWORD=letta \
     POSTGRES_DB=letta \
-    COMPOSIO_DISABLE_VERSION_CHECK=true \
-    LETTA_OTEL_EXPORTER_OTLP_ENDPOINT=http://localhost:4317
+    COMPOSIO_DISABLE_VERSION_CHECK=true
 
 WORKDIR /app
 
diff --git a/letta/server/rest_api/app.py b/letta/server/rest_api/app.py
index 363eca328..6212e584e 100644
--- a/letta/server/rest_api/app.py
+++ b/letta/server/rest_api/app.py
@@ -256,7 +256,7 @@ def create_application() -> "FastAPI":
     )
 
     # Set up OpenTelemetry tracing
-    otlp_endpoint = os.getenv("LETTA_OTEL_EXPORTER_OTLP_ENDPOINT")
+    otlp_endpoint = settings.otel_exporter_otlp_endpoint
     if otlp_endpoint:
         print(f"▶ Using OTLP tracing with endpoint: {otlp_endpoint}")
         env_name_suffix = os.getenv("ENV_NAME")
diff --git a/letta/tracing.py b/letta/tracing.py
index 2275759c7..e0dda3d50 100644
--- a/letta/tracing.py
+++ b/letta/tracing.py
@@ -90,8 +90,8 @@ async def trace_error_handler(_request: Request, exc: Exception) -> JSONResponse
     # Add error details to current span
     span = trace.get_current_span()
     if span:
-        span.add_event(
-            name="exception",
+        span.record_exception(
+            exc,
             attributes={
                 "exception.message": error_msg,
                 "exception.type": type(exc).__name__,
diff --git a/otel-collector-config-clickhouse.yaml b/otel-collector-config-clickhouse.yaml
index c18a1843a..6840610f1 100644
--- a/otel-collector-config-clickhouse.yaml
+++ b/otel-collector-config-clickhouse.yaml
@@ -62,6 +62,9 @@ exporters:
       max_elapsed_time: 300s
 
 service:
+  telemetry:
+    logs:
+      level: error
   pipelines:
     traces:
       receivers: [otlp]
diff --git a/otel-collector-config-file.yaml b/otel-collector-config-file.yaml
index 2552c0cc3..1dbc4c430 100644
--- a/otel-collector-config-file.yaml
+++ b/otel-collector-config-file.yaml
@@ -20,6 +20,9 @@ exporters:
       max_backups: 5
 
 service:
+  telemetry:
+    logs:
+      level: error
   pipelines:
     traces:
       receivers: [otlp]