diff --git a/api/app/Console/Commands/Artist/DemoteExpiredOptions.php b/api/app/Console/Commands/Artist/DemoteExpiredOptions.php
new file mode 100644
index 00000000..a3d7f8eb
--- /dev/null
+++ b/api/app/Console/Commands/Artist/DemoteExpiredOptions.php
@@ -0,0 +1,79 @@
+<?php
+
+declare(strict_types=1);
+
+namespace App\Console\Commands\Artist;
+
+use App\Enums\Artist\ArtistEngagementStatus;
+use App\Models\ArtistEngagement;
+use App\Models\Scopes\OrganisationScope;
+use App\Services\Artist\ArtistEngagementService;
+use Illuminate\Console\Command;
+
+/**
+ * RFC v0.2 — daily option-expiry demotion.
+ *
+ * Finds every engagement with booking_status = Option whose
+ * option_expires_at has passed, transitions it to Draft via the state
+ * machine (which records the transition activity entry), and writes
+ * an additional `option_expired` activity event so the audit log can
+ * distinguish system-driven expiries from manual demotions.
+ *
+ * Idempotency: the state machine returns immediately when the
+ * engagement is no longer in Option (e.g. another run already
+ * demoted it), so a second run within the same minute is a no-op
+ * for any given engagement.
+ *
+ * Notification: notification framework lands post-Accreditation. For
+ * Session 2 the command writes activity log only; emailing the
+ * project leader is tracked under BACKLOG entry
+ * ART-DEMOTE-NOTIFICATION.
+ */
+final class DemoteExpiredOptions extends Command
+{
+    protected $signature = 'artist:demote-expired-options';
+
+    protected $description = 'Demote ArtistEngagement rows whose option_expires_at has passed back to Draft.';
+
+    public function handle(ArtistEngagementService $service): int
+    {
+        $expired = ArtistEngagement::query()
+            ->withoutGlobalScope(OrganisationScope::class)
+            ->where('booking_status', ArtistEngagementStatus::Option->value)
+            ->whereNotNull('option_expires_at')
+            ->where('option_expires_at', '<=', now())
+            ->whereNull('deleted_at')
+            ->get();
+
+        $demotedIds = [];
+        foreach ($expired as $engagement) {
+            // Re-check status under fresh state — another worker / a
+            // user UI action may have already transitioned this row.
+            if ($engagement->booking_status !== ArtistEngagementStatus::Option) {
+                continue;
+            }
+
+            $service->transitionStatus($engagement, ArtistEngagementStatus::Draft);
+
+            activity('artist_engagement')
+                ->performedOn($engagement)
+                ->event('option_expired')
+                ->withProperties([
+                    'organisation_id' => $engagement->organisation_id,
+                    'event_id' => $engagement->event_id,
+                    'option_expires_at' => optional($engagement->option_expires_at)->toIso8601String(),
+                ])
+                ->log('option_expired');
+
+            $demotedIds[] = (string) $engagement->id;
+        }
+
+        $count = count($demotedIds);
+        $this->info("Demoted {$count} option(s) on ".now()->toDateString().'.');
+        if ($count > 0) {
+            $this->line('IDs: '.implode(', ', $demotedIds));
+        }
+
+        return self::SUCCESS;
+    }
+}
diff --git a/api/routes/console.php b/api/routes/console.php
index 2713d22a..ee2ff4bf 100644
--- a/api/routes/console.php
+++ b/api/routes/console.php
@@ -10,6 +10,13 @@ Artisan::command('inspire', function () {
 
 Schedule::command('invitations:expire')->daily();
 
+// RFC-TIMETABLE v0.2 — demote engagements whose option_expires_at has
+// passed back to Draft. Daily at 03:00 Europe/Amsterdam (matches the
+// scheduler's nightly window for low-traffic state changes).
+Schedule::command('artist:demote-expired-options')
+    ->dailyAt('03:00')
+    ->timezone('Europe/Amsterdam');
+
 // Telescope retention — dev-only (mirrors AppServiceProvider's
 // environment gate). 48h is enough for debugging without filling the
 // dev database.