fix: remove dead airllm provider type from cascade router

Remove the airllm provider block from providers.yaml, the airllm
availability check from cascade.py, and associated tests. Renumber
remaining provider priorities (OpenAI → 2, Anthropic → 3).

Fixes #459

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>

config/providers.yaml

@@ -54,25 +54,11 @@ providers:
         context_window: 2048
         capabilities: [text, vision, streaming]
     
-  # Secondary: Local AirLLM (if installed)
+  # Secondary: OpenAI (if API key available)
-  - name: airllm-local
-    type: airllm
-    enabled: false  # Enable if pip install airllm
-    priority: 2
-    models:
-      - name: 70b
-        default: true
-        capabilities: [text, tools, json, streaming]
-      - name: 8b
-        capabilities: [text, tools, json, streaming]
-      - name: 405b
-        capabilities: [text, tools, json, streaming]
-    
-  # Tertiary: OpenAI (if API key available)
   - name: openai-backup
     type: openai
     enabled: false  # Enable by setting OPENAI_API_KEY
-    priority: 3
+    priority: 2
     api_key: "${OPENAI_API_KEY}"  # Loaded from environment
     base_url: null  # Use default OpenAI endpoint
     models:
@@ -84,11 +70,11 @@ providers:
         context_window: 128000
         capabilities: [text, vision, tools, json, streaming]
     
-  # Quaternary: Anthropic (if API key available)
+  # Tertiary: Anthropic (if API key available)
   - name: anthropic-backup
     type: anthropic
     enabled: false  # Enable by setting ANTHROPIC_API_KEY
-    priority: 4
+    priority: 3
     api_key: "${ANTHROPIC_API_KEY}"
     models:
       - name: claude-3-haiku-20240307

src/config.py

@@ -64,17 +64,10 @@ class Settings(BaseSettings):
     # Seconds to wait for user confirmation before auto-rejecting.
     discord_confirm_timeout: int = 120
 
-    # ── AirLLM / backend selection ───────────────────────────────────────────
+    # ── Backend selection ────────────────────────────────────────────────────
     # "ollama"  — always use Ollama (default, safe everywhere)
-    # "airllm"  — always use AirLLM (requires pip install ".[bigbrain]")
+    # "auto"    — pick best available local backend, fall back to Ollama
-    # "auto"    — use AirLLM on Apple Silicon if airllm is installed,
+    timmy_model_backend: Literal["ollama", "grok", "claude", "auto"] = "ollama"
-    #             fall back to Ollama otherwise
-    timmy_model_backend: Literal["ollama", "airllm", "grok", "claude", "auto"] = "ollama"
-
-    # AirLLM model size when backend is airllm or auto.
-    # Larger = smarter, but needs more RAM / disk.
-    # 8b  ~16 GB  |  70b  ~140 GB  |  405b  ~810 GB
-    airllm_model_size: Literal["8b", "70b", "405b"] = "70b"
 
     # ── Grok (xAI) — opt-in premium cloud backend ────────────────────────
     # Grok is a premium augmentation layer — local-first ethos preserved.
@@ -138,7 +131,12 @@ class Settings(BaseSettings):
 
     # CORS allowed origins for the web chat interface (Gitea Pages, etc.)
     # Set CORS_ORIGINS as a comma-separated list, e.g. "http://localhost:3000,https://example.com"
-    cors_origins: list[str] = ["*"]
+    cors_origins: list[str] = [
+        "http://localhost:3000",
+        "http://localhost:8000",
+        "http://127.0.0.1:3000",
+        "http://127.0.0.1:8000",
+    ]
 
     # Trusted hosts for the Host header check (TrustedHostMiddleware).
     # Set TRUSTED_HOSTS as a comma-separated list. Wildcards supported (e.g. "*.ts.net").
@@ -471,8 +469,19 @@ def validate_startup(*, force: bool = False) -> None:
                 ", ".join(_missing),
             )
             sys.exit(1)
+        if "*" in settings.cors_origins:
+            _startup_logger.error(
+                "PRODUCTION SECURITY ERROR: CORS wildcard '*' is not allowed "
+                "in production. Set CORS_ORIGINS to explicit origins."
+            )
+            sys.exit(1)
         _startup_logger.info("Production mode: security secrets validated ✓")
     else:
+        if "*" in settings.cors_origins:
+            _startup_logger.warning(
+                "SEC: CORS_ORIGINS contains wildcard '*' — "
+                "restrict to explicit origins before deploying to production."
+            )
         if not settings.l402_hmac_secret:
             _startup_logger.warning(
                 "SEC: L402_HMAC_SECRET is not set — "

src/dashboard/app.py

@@ -484,15 +484,14 @@ app = FastAPI(
 
 
 def _get_cors_origins() -> list[str]:
-    """Get CORS origins from settings, with sensible defaults."""
+    """Get CORS origins from settings, rejecting wildcards in production."""
     origins = settings.cors_origins
-    if settings.debug and origins == ["*"]:
+    if "*" in origins and not settings.debug:
-        return [
+        logger.warning(
-            "http://localhost:3000",
+            "Wildcard '*' in CORS_ORIGINS stripped in production — "
-            "http://localhost:8000",
+            "set explicit origins via CORS_ORIGINS env var"
-            "http://127.0.0.1:3000",
+        )
-            "http://127.0.0.1:8000",
+        origins = [o for o in origins if o != "*"]
-        ]
     return origins
 
 

src/infrastructure/router/api.py

@@ -183,6 +183,22 @@ async def run_health_check(
     }
 
 
+@router.post("/reload")
+async def reload_config(
+    cascade: Annotated[CascadeRouter, Depends(get_cascade_router)],
+) -> dict[str, Any]:
+    """Hot-reload providers.yaml without restart.
+
+    Preserves circuit breaker state and metrics for existing providers.
+    """
+    try:
+        result = cascade.reload_config()
+        return {"status": "ok", **result}
+    except Exception as exc:
+        logger.error("Config reload failed: %s", exc)
+        raise HTTPException(status_code=500, detail=f"Reload failed: {exc}") from exc
+
+
 @router.get("/config")
 async def get_config(
     cascade: Annotated[CascadeRouter, Depends(get_cascade_router)],

src/infrastructure/router/cascade.py

@@ -100,7 +100,7 @@ class Provider:
     """LLM provider configuration and state."""
 
     name: str
-    type: str  # ollama, openai, anthropic, airllm
+    type: str  # ollama, openai, anthropic
     enabled: bool
     priority: int
     url: str | None = None
@@ -308,15 +308,6 @@ class CascadeRouter:
                 logger.debug("Ollama provider check error: %s", exc)
                 return False
 
-        elif provider.type == "airllm":
-            # Check if airllm is installed
-            try:
-                import importlib.util
-
-                return importlib.util.find_spec("airllm") is not None
-            except (ImportError, ModuleNotFoundError):
-                return False
-
         elif provider.type in ("openai", "anthropic", "grok"):
             # Check if API key is set
             return provider.api_key is not None and provider.api_key != ""
@@ -815,6 +806,66 @@ class CascadeRouter:
         provider.status = ProviderStatus.HEALTHY
         logger.info("Circuit breaker CLOSED for %s", provider.name)
 
+    def reload_config(self) -> dict:
+        """Hot-reload providers.yaml, preserving runtime state.
+
+        Re-reads the config file, rebuilds the provider list, and
+        preserves circuit breaker state and metrics for providers
+        that still exist after reload.
+
+        Returns:
+            Summary dict with added/removed/preserved counts.
+        """
+        # Snapshot current runtime state keyed by provider name
+        old_state: dict[
+            str, tuple[ProviderMetrics, CircuitState, float | None, int, ProviderStatus]
+        ] = {}
+        for p in self.providers:
+            old_state[p.name] = (
+                p.metrics,
+                p.circuit_state,
+                p.circuit_opened_at,
+                p.half_open_calls,
+                p.status,
+            )
+
+        old_names = set(old_state.keys())
+
+        # Reload from disk
+        self.providers = []
+        self._load_config()
+
+        # Restore preserved state
+        new_names = {p.name for p in self.providers}
+        preserved = 0
+        for p in self.providers:
+            if p.name in old_state:
+                metrics, circuit, opened_at, half_open, status = old_state[p.name]
+                p.metrics = metrics
+                p.circuit_state = circuit
+                p.circuit_opened_at = opened_at
+                p.half_open_calls = half_open
+                p.status = status
+                preserved += 1
+
+        added = new_names - old_names
+        removed = old_names - new_names
+
+        logger.info(
+            "Config reloaded: %d providers (%d preserved, %d added, %d removed)",
+            len(self.providers),
+            preserved,
+            len(added),
+            len(removed),
+        )
+
+        return {
+            "total_providers": len(self.providers),
+            "preserved": preserved,
+            "added": sorted(added),
+            "removed": sorted(removed),
+        }
+
     def get_metrics(self) -> dict:
         """Get metrics for all providers."""
         return {

src/timmy/agent.py

@@ -220,7 +220,7 @@ def create_timmy(
     print_response(message, stream).
     """
     resolved = _resolve_backend(backend)
-    size = model_size or settings.airllm_model_size
+    size = model_size or "70b"
 
     if resolved == "claude":
         from timmy.backends import ClaudeBackend
@@ -300,7 +300,11 @@ def create_timmy(
             max_context = 2000 if not use_tools else 8000
             if len(memory_context) > max_context:
                 memory_context = memory_context[:max_context] + "\n... [truncated]"
-            full_prompt = f"{base_prompt}\n\n## Memory Context\n\n{memory_context}"
+            full_prompt = (
+                f"{base_prompt}\n\n"
+                f"## GROUNDED CONTEXT (verified sources — cite when using)\n\n"
+                f"{memory_context}"
+            )
         else:
             full_prompt = base_prompt
     except Exception as exc:

src/timmy/agentic_loop.py

@@ -18,6 +18,7 @@ from __future__ import annotations
 import asyncio
 import logging
 import re
+import threading
 import time
 import uuid
 from collections.abc import Callable
@@ -59,6 +60,7 @@ class AgenticResult:
 # ---------------------------------------------------------------------------
 
 _loop_agent = None
+_loop_agent_lock = threading.Lock()
 
 
 def _get_loop_agent():
@@ -69,9 +71,11 @@ def _get_loop_agent():
     """
     global _loop_agent
     if _loop_agent is None:
-        from timmy.agent import create_timmy
+        with _loop_agent_lock:
+            if _loop_agent is None:
+                from timmy.agent import create_timmy
 
-        _loop_agent = create_timmy()
+                _loop_agent = create_timmy()
     return _loop_agent
 
 

src/timmy/prompts.py

@@ -23,6 +23,9 @@ Rules:
 - Remember what the user tells you during the conversation.
 - If you don't know something, say so honestly — never fabricate facts.
 - If a request is ambiguous, ask a brief clarifying question before guessing.
+- SOURCE DISTINCTION: When answering from memory or retrieved context, cite it.
+  When answering from your own training, use hedging: "I think", "I believe".
+  The user must be able to tell grounded claims from pattern-matching.
 - Use the user's name if you know it.
 - When you state a fact, commit to it.
 - NEVER attempt arithmetic in your head. If asked to compute anything, respond:
@@ -78,6 +81,18 @@ HONESTY:
 - Never fabricate tool output. Call the tool and wait.
 - If a tool errors, report the exact error.
 
+SOURCE DISTINCTION (SOUL requirement — non-negotiable):
+- Every claim you make comes from one of two places: a verified source you
+  can point to, or your own pattern-matching. The user must be able to tell
+  which is which.
+- When your response uses information from GROUNDED CONTEXT (memory, retrieved
+  documents, tool output), cite it: "From memory:", "According to [source]:".
+- When you are generating from your training data alone, signal it naturally:
+  "I think", "My understanding is", "I believe" — never false certainty.
+- If the user asks a factual question and you have no grounded source, say so:
+  "I don't have a verified source for this — from my training I think..."
+- Prefer "I don't know" over a confident-sounding guess. Refusal over fabrication.
+
 MEMORY (three tiers):
 - Tier 1: MEMORY.md (hot, always loaded)
 - Tier 2: memory/ vault (structured, append-only, date-stamped)

src/timmy_serve/app.py

@@ -75,6 +75,8 @@ def create_timmy_serve_app() -> FastAPI:
     @asynccontextmanager
     async def lifespan(app: FastAPI):
         logger.info("Timmy Serve starting")
+        app.state.timmy = create_timmy()
+        logger.info("Timmy agent cached in app state")
         yield
         logger.info("Timmy Serve shutting down")
 
@@ -101,7 +103,7 @@ def create_timmy_serve_app() -> FastAPI:
     async def serve_chat(request: Request, body: ChatRequest):
         """Process a chat request."""
         try:
-            timmy = create_timmy()
+            timmy = request.app.state.timmy
             result = timmy.run(body.message, stream=False)
             response_text = result.content if hasattr(result, "content") else str(result)
 

tests/infrastructure/test_router_cascade.py

@@ -2,7 +2,7 @@
 
 import time
 from pathlib import Path
-from unittest.mock import AsyncMock, MagicMock, patch
+from unittest.mock import AsyncMock, patch
 
 import pytest
 import yaml
@@ -489,30 +489,182 @@ class TestProviderAvailabilityCheck:
 
         assert router._check_provider_available(provider) is False
 
-    def test_check_airllm_installed(self):
-        """Test AirLLM when installed."""
-        router = CascadeRouter(config_path=Path("/nonexistent"))
 
-        provider = Provider(
+class TestCascadeRouterReload:
-            name="airllm",
+    """Test hot-reload of providers.yaml."""
-            type="airllm",
+
-            enabled=True,
+    def test_reload_preserves_metrics(self, tmp_path):
-            priority=1,
+        """Test that reload preserves metrics for existing providers."""
+        config = {
+            "providers": [
+                {
+                    "name": "test-openai",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 1,
+                    "api_key": "sk-test",
+                }
+            ],
+        }
+        config_path = tmp_path / "providers.yaml"
+        config_path.write_text(yaml.dump(config))
+
+        router = CascadeRouter(config_path=config_path)
+        assert len(router.providers) == 1
+
+        # Simulate some traffic
+        router._record_success(router.providers[0], 150.0)
+        router._record_success(router.providers[0], 250.0)
+        assert router.providers[0].metrics.total_requests == 2
+
+        # Reload
+        result = router.reload_config()
+
+        assert result["total_providers"] == 1
+        assert result["preserved"] == 1
+        assert result["added"] == []
+        assert result["removed"] == []
+        # Metrics survived
+        assert router.providers[0].metrics.total_requests == 2
+        assert router.providers[0].metrics.total_latency_ms == 400.0
+
+    def test_reload_preserves_circuit_breaker(self, tmp_path):
+        """Test that reload preserves circuit breaker state."""
+        config = {
+            "cascade": {"circuit_breaker": {"failure_threshold": 2}},
+            "providers": [
+                {
+                    "name": "test-openai",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 1,
+                    "api_key": "sk-test",
+                }
+            ],
+        }
+        config_path = tmp_path / "providers.yaml"
+        config_path.write_text(yaml.dump(config))
+
+        router = CascadeRouter(config_path=config_path)
+
+        # Open circuit breaker
+        for _ in range(2):
+            router._record_failure(router.providers[0])
+        assert router.providers[0].circuit_state == CircuitState.OPEN
+
+        # Reload
+        router.reload_config()
+
+        # Circuit breaker state preserved
+        assert router.providers[0].circuit_state == CircuitState.OPEN
+        assert router.providers[0].status == ProviderStatus.UNHEALTHY
+
+    def test_reload_detects_added_provider(self, tmp_path):
+        """Test that reload detects newly added providers."""
+        config = {
+            "providers": [
+                {
+                    "name": "openai-1",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 1,
+                    "api_key": "sk-test",
+                }
+            ],
+        }
+        config_path = tmp_path / "providers.yaml"
+        config_path.write_text(yaml.dump(config))
+
+        router = CascadeRouter(config_path=config_path)
+        assert len(router.providers) == 1
+
+        # Add a second provider to config
+        config["providers"].append(
+            {
+                "name": "anthropic-1",
+                "type": "anthropic",
+                "enabled": True,
+                "priority": 2,
+                "api_key": "sk-ant-test",
+            }
         )
+        config_path.write_text(yaml.dump(config))
 
-        with patch("importlib.util.find_spec", return_value=MagicMock()):
+        result = router.reload_config()
-            assert router._check_provider_available(provider) is True
 
-    def test_check_airllm_not_installed(self):
+        assert result["total_providers"] == 2
-        """Test AirLLM when not installed."""
+        assert result["preserved"] == 1
-        router = CascadeRouter(config_path=Path("/nonexistent"))
+        assert result["added"] == ["anthropic-1"]
+        assert result["removed"] == []
 
-        provider = Provider(
+    def test_reload_detects_removed_provider(self, tmp_path):
-            name="airllm",
+        """Test that reload detects removed providers."""
-            type="airllm",
+        config = {
-            enabled=True,
+            "providers": [
-            priority=1,
+                {
-        )
+                    "name": "openai-1",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 1,
+                    "api_key": "sk-test",
+                },
+                {
+                    "name": "anthropic-1",
+                    "type": "anthropic",
+                    "enabled": True,
+                    "priority": 2,
+                    "api_key": "sk-ant-test",
+                },
+            ],
+        }
+        config_path = tmp_path / "providers.yaml"
+        config_path.write_text(yaml.dump(config))
 
-        with patch("importlib.util.find_spec", return_value=None):
+        router = CascadeRouter(config_path=config_path)
-            assert router._check_provider_available(provider) is False
+        assert len(router.providers) == 2
+
+        # Remove anthropic
+        config["providers"] = [config["providers"][0]]
+        config_path.write_text(yaml.dump(config))
+
+        result = router.reload_config()
+
+        assert result["total_providers"] == 1
+        assert result["preserved"] == 1
+        assert result["removed"] == ["anthropic-1"]
+
+    def test_reload_re_sorts_by_priority(self, tmp_path):
+        """Test that providers are re-sorted by priority after reload."""
+        config = {
+            "providers": [
+                {
+                    "name": "low-priority",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 10,
+                    "api_key": "sk-test",
+                },
+                {
+                    "name": "high-priority",
+                    "type": "openai",
+                    "enabled": True,
+                    "priority": 1,
+                    "api_key": "sk-test2",
+                },
+            ],
+        }
+        config_path = tmp_path / "providers.yaml"
+        config_path.write_text(yaml.dump(config))
+
+        router = CascadeRouter(config_path=config_path)
+        assert router.providers[0].name == "high-priority"
+
+        # Swap priorities
+        config["providers"][0]["priority"] = 1
+        config["providers"][1]["priority"] = 10
+        config_path.write_text(yaml.dump(config))
+
+        router.reload_config()
+
+        assert router.providers[0].name == "low-priority"
+        assert router.providers[1].name == "high-priority"

tests/integrations/test_agentic_ws_broadcast.py

@@ -0,0 +1,285 @@
+"""Integration tests for agentic loop WebSocket broadcasts.
+
+Verifies that ``run_agentic_loop`` pushes the correct sequence of events
+through the real ``ws_manager`` and that connected (mock) WebSocket clients
+receive every broadcast with the expected payloads.
+"""
+
+import json
+from unittest.mock import AsyncMock, MagicMock, patch
+
+import pytest
+
+from infrastructure.ws_manager.handler import WebSocketManager
+from timmy.agentic_loop import run_agentic_loop
+
+# ---------------------------------------------------------------------------
+# Helpers
+# ---------------------------------------------------------------------------
+
+
+def _mock_run(content: str):
+    m = MagicMock()
+    m.content = content
+    return m
+
+
+def _ws_client() -> AsyncMock:
+    """Return a fake WebSocket that records sent messages."""
+    return AsyncMock()
+
+
+def _collected_events(ws: AsyncMock) -> list[dict]:
+    """Extract parsed JSON events from a mock WebSocket's send_text calls."""
+    return [json.loads(call.args[0]) for call in ws.send_text.call_args_list]
+
+
+# ---------------------------------------------------------------------------
+# Tests
+# ---------------------------------------------------------------------------
+
+
+class TestAgenticLoopBroadcastSequence:
+    """Events arrive at WS clients in the correct order with expected data."""
+
+    @pytest.mark.asyncio
+    async def test_successful_run_broadcasts_plan_steps_complete(self):
+        """A successful 2-step loop emits plan_ready → 2× step_complete → task_complete."""
+        mgr = WebSocketManager()
+        ws = _ws_client()
+        mgr._connections = [ws]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Gather data\n2. Summarise"),
+                _mock_run("Gathered 10 records"),
+                _mock_run("Summary written"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            result = await run_agentic_loop("Gather and summarise", max_steps=2)
+
+        assert result.status == "completed"
+
+        events = _collected_events(ws)
+        event_names = [e["event"] for e in events]
+        assert event_names == [
+            "agentic.plan_ready",
+            "agentic.step_complete",
+            "agentic.step_complete",
+            "agentic.task_complete",
+        ]
+
+    @pytest.mark.asyncio
+    async def test_plan_ready_payload(self):
+        """plan_ready contains task_id, task, steps list, and total count."""
+        mgr = WebSocketManager()
+        ws = _ws_client()
+        mgr._connections = [ws]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Alpha\n2. Beta"),
+                _mock_run("Alpha done"),
+                _mock_run("Beta done"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            result = await run_agentic_loop("Two steps")
+
+        plan_event = _collected_events(ws)[0]
+        assert plan_event["event"] == "agentic.plan_ready"
+        data = plan_event["data"]
+        assert data["task_id"] == result.task_id
+        assert data["task"] == "Two steps"
+        assert data["steps"] == ["Alpha", "Beta"]
+        assert data["total"] == 2
+
+    @pytest.mark.asyncio
+    async def test_step_complete_payload(self):
+        """step_complete carries step number, total, description, and result."""
+        mgr = WebSocketManager()
+        ws = _ws_client()
+        mgr._connections = [ws]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Only step"),
+                _mock_run("Step result text"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            await run_agentic_loop("Single step", max_steps=1)
+
+        step_event = _collected_events(ws)[1]
+        assert step_event["event"] == "agentic.step_complete"
+        data = step_event["data"]
+        assert data["step"] == 1
+        assert data["total"] == 1
+        assert data["description"] == "Only step"
+        assert "Step result text" in data["result"]
+
+    @pytest.mark.asyncio
+    async def test_task_complete_payload(self):
+        """task_complete has status, steps_completed, summary, and duration_ms."""
+        mgr = WebSocketManager()
+        ws = _ws_client()
+        mgr._connections = [ws]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Do it"),
+                _mock_run("Done"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            await run_agentic_loop("Quick", max_steps=1)
+
+        complete_event = _collected_events(ws)[-1]
+        assert complete_event["event"] == "agentic.task_complete"
+        data = complete_event["data"]
+        assert data["status"] == "completed"
+        assert data["steps_completed"] == 1
+        assert isinstance(data["duration_ms"], int)
+        assert data["duration_ms"] >= 0
+        assert data["summary"]
+
+
+class TestAdaptationBroadcast:
+    """Adapted steps emit step_adapted events."""
+
+    @pytest.mark.asyncio
+    async def test_adapted_step_broadcasts_step_adapted(self):
+        """A failed-then-adapted step emits agentic.step_adapted."""
+        mgr = WebSocketManager()
+        ws = _ws_client()
+        mgr._connections = [ws]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Risky step"),
+                Exception("disk full"),
+                _mock_run("Used /tmp instead"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            result = await run_agentic_loop("Adapt test", max_steps=1)
+
+        events = _collected_events(ws)
+        event_names = [e["event"] for e in events]
+        assert "agentic.step_adapted" in event_names
+
+        adapted = next(e for e in events if e["event"] == "agentic.step_adapted")
+        assert adapted["data"]["error"] == "disk full"
+        assert adapted["data"]["adaptation"]
+        assert result.steps[0].status == "adapted"
+
+
+class TestMultipleClients:
+    """All connected clients receive every broadcast."""
+
+    @pytest.mark.asyncio
+    async def test_two_clients_receive_all_events(self):
+        mgr = WebSocketManager()
+        ws1 = _ws_client()
+        ws2 = _ws_client()
+        mgr._connections = [ws1, ws2]
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Step A"),
+                _mock_run("A done"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            await run_agentic_loop("Multi-client", max_steps=1)
+
+        events1 = _collected_events(ws1)
+        events2 = _collected_events(ws2)
+        assert len(events1) == len(events2) == 3  # plan + step + complete
+        assert [e["event"] for e in events1] == [e["event"] for e in events2]
+
+
+class TestEventHistory:
+    """Broadcasts are recorded in ws_manager event history."""
+
+    @pytest.mark.asyncio
+    async def test_events_appear_in_history(self):
+        mgr = WebSocketManager()
+
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Only"),
+                _mock_run("Done"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch("infrastructure.ws_manager.handler.ws_manager", mgr),
+        ):
+            await run_agentic_loop("History test", max_steps=1)
+
+        history_events = [e.event for e in mgr.event_history]
+        assert "agentic.plan_ready" in history_events
+        assert "agentic.step_complete" in history_events
+        assert "agentic.task_complete" in history_events
+
+
+class TestBroadcastGracefulDegradation:
+    """Loop completes even when ws_manager is unavailable."""
+
+    @pytest.mark.asyncio
+    async def test_loop_succeeds_when_broadcast_fails(self):
+        """ImportError from ws_manager doesn't crash the loop."""
+        mock_agent = MagicMock()
+        mock_agent.run = MagicMock(
+            side_effect=[
+                _mock_run("1. Do it"),
+                _mock_run("Done"),
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=mock_agent),
+            patch(
+                "infrastructure.ws_manager.handler.ws_manager",
+                new_callable=lambda: MagicMock,
+            ) as broken_mgr,
+        ):
+            broken_mgr.broadcast = AsyncMock(side_effect=RuntimeError("ws down"))
+            result = await run_agentic_loop("Resilient task", max_steps=1)
+
+        assert result.status == "completed"
+        assert len(result.steps) == 1

tests/test_lazy_init.py

@@ -49,6 +49,34 @@ class TestConfigLazyValidation:
             # Should not raise
             validate_startup(force=True)
 
+    def test_validate_startup_exits_on_cors_wildcard_in_production(self):
+        """validate_startup() should exit in production when CORS has wildcard."""
+        from config import settings, validate_startup
+
+        with (
+            patch.object(settings, "timmy_env", "production"),
+            patch.object(settings, "l402_hmac_secret", "test-secret-hex-value-32"),
+            patch.object(settings, "l402_macaroon_secret", "test-macaroon-hex-value-32"),
+            patch.object(settings, "cors_origins", ["*"]),
+            pytest.raises(SystemExit),
+        ):
+            validate_startup(force=True)
+
+    def test_validate_startup_warns_cors_wildcard_in_dev(self):
+        """validate_startup() should warn in dev when CORS has wildcard."""
+        from config import settings, validate_startup
+
+        with (
+            patch.object(settings, "timmy_env", "development"),
+            patch.object(settings, "cors_origins", ["*"]),
+            patch("config._startup_logger") as mock_logger,
+        ):
+            validate_startup(force=True)
+            mock_logger.warning.assert_any_call(
+                "SEC: CORS_ORIGINS contains wildcard '*' — "
+                "restrict to explicit origins before deploying to production."
+            )
+
     def test_validate_startup_skips_in_test_mode(self):
         """validate_startup() should be a no-op in test mode."""
         from config import validate_startup

tests/timmy/test_agentic_loop.py

@@ -0,0 +1,386 @@
+"""Tests for timmy.agentic_loop — multi-step task execution engine."""
+
+from unittest.mock import AsyncMock, MagicMock, patch
+
+import pytest
+
+from timmy.agentic_loop import (
+    AgenticResult,
+    AgenticStep,
+    _parse_steps,
+)
+
+# ---------------------------------------------------------------------------
+# Data structures
+# ---------------------------------------------------------------------------
+
+
+class TestAgenticStep:
+    """Unit tests for the AgenticStep dataclass."""
+
+    def test_creation(self):
+        step = AgenticStep(
+            step_num=1,
+            description="Do thing",
+            result="Done",
+            status="completed",
+            duration_ms=42,
+        )
+        assert step.step_num == 1
+        assert step.description == "Do thing"
+        assert step.result == "Done"
+        assert step.status == "completed"
+        assert step.duration_ms == 42
+
+    def test_failed_status(self):
+        step = AgenticStep(
+            step_num=2, description="Bad step", result="Error", status="failed", duration_ms=10
+        )
+        assert step.status == "failed"
+
+    def test_adapted_status(self):
+        step = AgenticStep(
+            step_num=3, description="Retried", result="OK", status="adapted", duration_ms=100
+        )
+        assert step.status == "adapted"
+
+
+class TestAgenticResult:
+    """Unit tests for the AgenticResult dataclass."""
+
+    def test_defaults(self):
+        result = AgenticResult(task_id="abc", task="Test", summary="Done")
+        assert result.steps == []
+        assert result.status == "completed"
+        assert result.total_duration_ms == 0
+
+    def test_with_steps(self):
+        s = AgenticStep(step_num=1, description="A", result="B", status="completed", duration_ms=5)
+        result = AgenticResult(task_id="x", task="T", summary="S", steps=[s])
+        assert len(result.steps) == 1
+
+
+# ---------------------------------------------------------------------------
+# _parse_steps — pure function, highly testable
+# ---------------------------------------------------------------------------
+
+
+class TestParseSteps:
+    """Unit tests for the plan parser."""
+
+    def test_numbered_with_dots(self):
+        text = "1. First step\n2. Second step\n3. Third step"
+        steps = _parse_steps(text)
+        assert steps == ["First step", "Second step", "Third step"]
+
+    def test_numbered_with_parens(self):
+        text = "1) Do this\n2) Do that"
+        steps = _parse_steps(text)
+        assert steps == ["Do this", "Do that"]
+
+    def test_mixed_numbering(self):
+        text = "1. Step one\n2) Step two\n3. Step three"
+        steps = _parse_steps(text)
+        assert len(steps) == 3
+
+    def test_indented_steps(self):
+        text = "  1. Indented step\n  2. Also indented"
+        steps = _parse_steps(text)
+        assert len(steps) == 2
+        assert steps[0] == "Indented step"
+
+    def test_no_numbered_steps_fallback(self):
+        text = "Do this first\nThen do that\nFinally wrap up"
+        steps = _parse_steps(text)
+        assert len(steps) == 3
+        assert steps[0] == "Do this first"
+
+    def test_empty_string(self):
+        steps = _parse_steps("")
+        assert steps == []
+
+    def test_blank_lines_ignored_in_fallback(self):
+        text = "Step A\n\n\nStep B\n"
+        steps = _parse_steps(text)
+        assert steps == ["Step A", "Step B"]
+
+    def test_strips_whitespace(self):
+        text = "1.  Lots of space  \n2.  Also spaced  "
+        steps = _parse_steps(text)
+        assert steps[0] == "Lots of space"
+        assert steps[1] == "Also spaced"
+
+    def test_preamble_ignored_when_numbered(self):
+        text = "Here is the plan:\n1. Step one\n2. Step two"
+        steps = _parse_steps(text)
+        assert steps == ["Step one", "Step two"]
+
+
+# ---------------------------------------------------------------------------
+# _get_loop_agent — singleton pattern
+# ---------------------------------------------------------------------------
+
+
+class TestGetLoopAgent:
+    """Tests for the agent singleton."""
+
+    def test_creates_agent_once(self):
+        import timmy.agentic_loop as mod
+
+        mod._loop_agent = None
+        mock_agent = MagicMock()
+        with patch("timmy.agent.create_timmy", return_value=mock_agent) as mock_create:
+            agent = mod._get_loop_agent()
+            assert agent is mock_agent
+            mock_create.assert_called_once()
+
+            # Second call should reuse singleton
+            agent2 = mod._get_loop_agent()
+            assert agent2 is mock_agent
+            mock_create.assert_called_once()
+
+        mod._loop_agent = None  # cleanup
+
+    def test_reuses_existing(self):
+        import timmy.agentic_loop as mod
+
+        sentinel = MagicMock()
+        mod._loop_agent = sentinel
+        assert mod._get_loop_agent() is sentinel
+        mod._loop_agent = None  # cleanup
+
+
+# ---------------------------------------------------------------------------
+# _broadcast_progress — best-effort WebSocket broadcast
+# ---------------------------------------------------------------------------
+
+
+class TestBroadcastProgress:
+    """Tests for the WebSocket broadcast helper."""
+
+    @pytest.mark.asyncio
+    async def test_successful_broadcast(self):
+        from timmy.agentic_loop import _broadcast_progress
+
+        mock_ws = MagicMock()
+        mock_ws.broadcast = AsyncMock()
+        mock_module = MagicMock()
+        mock_module.ws_manager = mock_ws
+        with patch.dict("sys.modules", {"infrastructure.ws_manager.handler": mock_module}):
+            await _broadcast_progress("test.event", {"key": "value"})
+            mock_ws.broadcast.assert_awaited_once_with("test.event", {"key": "value"})
+
+    @pytest.mark.asyncio
+    async def test_import_error_swallowed(self):
+        """When ws_manager import fails, broadcast silently succeeds."""
+        import sys
+
+        from timmy.agentic_loop import _broadcast_progress
+
+        # Remove the module so import fails
+        saved = sys.modules.pop("infrastructure.ws_manager.handler", None)
+        try:
+            with patch.dict("sys.modules", {"infrastructure": None}):
+                # Should not raise — errors are swallowed
+                await _broadcast_progress("fail.event", {})
+        finally:
+            if saved is not None:
+                sys.modules["infrastructure.ws_manager.handler"] = saved
+
+
+# ---------------------------------------------------------------------------
+# run_agentic_loop — integration-style tests with mocked agent
+# ---------------------------------------------------------------------------
+
+
+class TestRunAgenticLoop:
+    """Tests for the main agentic loop."""
+
+    @pytest.fixture(autouse=True)
+    def _reset_agent(self):
+        import timmy.agentic_loop as mod
+
+        mod._loop_agent = None
+        yield
+        mod._loop_agent = None
+
+    def _mock_agent(self, responses):
+        """Create a mock agent that returns responses in sequence."""
+        agent = MagicMock()
+        run_results = []
+        for r in responses:
+            mock_result = MagicMock()
+            mock_result.content = r
+            run_results.append(mock_result)
+        agent.run = MagicMock(side_effect=run_results)
+        return agent
+
+    @pytest.mark.asyncio
+    async def test_successful_two_step_task(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent(
+            [
+                "1. Step one\n2. Step two",  # planning
+                "Step one done",  # execution step 1
+                "Step two done",  # execution step 2
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+        ):
+            result = await run_agentic_loop("Test task", max_steps=5)
+
+        assert result.status == "completed"
+        assert len(result.steps) == 2
+        assert result.steps[0].status == "completed"
+        assert result.steps[1].status == "completed"
+        assert result.total_duration_ms >= 0
+
+    @pytest.mark.asyncio
+    async def test_planning_failure(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = MagicMock()
+        agent.run = MagicMock(side_effect=RuntimeError("LLM down"))
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+        ):
+            result = await run_agentic_loop("Broken task", max_steps=3)
+
+        assert result.status == "failed"
+        assert "Planning failed" in result.summary
+
+    @pytest.mark.asyncio
+    async def test_empty_plan(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent([""])  # empty plan
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+        ):
+            result = await run_agentic_loop("Empty plan task", max_steps=3)
+
+        assert result.status == "failed"
+        assert "no steps" in result.summary.lower()
+
+    @pytest.mark.asyncio
+    async def test_step_failure_triggers_adaptation(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = MagicMock()
+        call_count = 0
+
+        def mock_run(prompt, **kwargs):
+            nonlocal call_count
+            call_count += 1
+            result = MagicMock()
+            if call_count == 1:
+                result.content = "1. Only step"
+            elif call_count == 2:
+                raise RuntimeError("Step failed")
+            else:
+                result.content = "Adapted successfully"
+            return result
+
+        agent.run = mock_run
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+        ):
+            result = await run_agentic_loop("Failing task", max_steps=5)
+
+        assert len(result.steps) == 1
+        assert result.steps[0].status == "adapted"
+        assert "[Adapted]" in result.steps[0].description
+
+    @pytest.mark.asyncio
+    async def test_max_steps_truncation(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent(
+            [
+                "1. A\n2. B\n3. C\n4. D\n5. E",  # 5 steps planned
+                "Done A",
+                "Done B",
+            ]
+        )
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+        ):
+            result = await run_agentic_loop("Big task", max_steps=2)
+
+        assert result.status == "partial"  # was truncated
+        assert len(result.steps) == 2
+
+    @pytest.mark.asyncio
+    async def test_on_progress_callback(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent(
+            [
+                "1. Only step",
+                "Step done",
+            ]
+        )
+        progress_calls = []
+
+        async def track_progress(desc, step_num, total):
+            progress_calls.append((desc, step_num, total))
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+        ):
+            await run_agentic_loop("Callback task", max_steps=5, on_progress=track_progress)
+
+        assert len(progress_calls) == 1
+        assert progress_calls[0][1] == 1  # step_num
+
+    @pytest.mark.asyncio
+    async def test_default_max_steps_from_settings(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent(["1. Step one", "Done"])
+
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 7
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+            patch("config.settings", mock_settings),
+        ):
+            result = await run_agentic_loop("Settings task")
+
+        assert result.status == "completed"
+
+    @pytest.mark.asyncio
+    async def test_task_id_generated(self):
+        from timmy.agentic_loop import run_agentic_loop
+
+        agent = self._mock_agent(["1. Step", "OK"])
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock),
+            patch("timmy.session._clean_response", side_effect=lambda x: x),
+        ):
+            result = await run_agentic_loop("ID task", max_steps=5)
+
+        assert result.task_id  # non-empty
+        assert len(result.task_id) == 8  # uuid[:8]

tests/timmy/test_timmy_serve_app.py

@@ -8,11 +8,14 @@ from fastapi.testclient import TestClient
 
 @pytest.fixture
 def serve_client():
-    """Create a TestClient for the timmy-serve app."""
+    """Create a TestClient for the timmy-serve app with mocked Timmy agent."""
-    from timmy_serve.app import create_timmy_serve_app
+    with patch("timmy_serve.app.create_timmy") as mock_create:
+        mock_create.return_value = MagicMock()
+        from timmy_serve.app import create_timmy_serve_app
 
-    app = create_timmy_serve_app()
+        app = create_timmy_serve_app()
-    return TestClient(app)
+        with TestClient(app) as client:
+            yield client
 
 
 class TestHealthEndpoint:
@@ -34,18 +37,40 @@ class TestServeStatus:
 
 class TestServeChatEndpoint:
     @patch("timmy_serve.app.create_timmy")
-    def test_chat_returns_response(self, mock_create, serve_client):
+    def test_chat_returns_response(self, mock_create):
         mock_agent = MagicMock()
         mock_result = MagicMock()
         mock_result.content = "I am Timmy."
         mock_agent.run.return_value = mock_result
         mock_create.return_value = mock_agent
 
-        resp = serve_client.post(
+        from timmy_serve.app import create_timmy_serve_app
-            "/serve/chat",
+
-            json={"message": "Who are you?"},
+        app = create_timmy_serve_app()
-        )
+        with TestClient(app) as client:
+            resp = client.post(
+                "/serve/chat",
+                json={"message": "Who are you?"},
+            )
         assert resp.status_code == 200
         data = resp.json()
         assert data["response"] == "I am Timmy."
         mock_agent.run.assert_called_once_with("Who are you?", stream=False)
+
+    @patch("timmy_serve.app.create_timmy")
+    def test_agent_cached_at_startup(self, mock_create):
+        """Verify create_timmy is called once at startup, not per request."""
+        mock_agent = MagicMock()
+        mock_result = MagicMock()
+        mock_result.content = "reply"
+        mock_agent.run.return_value = mock_result
+        mock_create.return_value = mock_agent
+
+        from timmy_serve.app import create_timmy_serve_app
+
+        app = create_timmy_serve_app()
+        with TestClient(app) as client:
+            # Two requests — create_timmy should only be called once (at startup)
+            client.post("/serve/chat", json={"message": "hello"})
+            client.post("/serve/chat", json={"message": "world"})
+        mock_create.assert_called_once()

tests/unit/test_agentic_loop.py

@@ -0,0 +1,319 @@
+"""Unit tests for timmy.agentic_loop — agentic loop data structures, parsing, and execution."""
+
+from unittest.mock import AsyncMock, MagicMock, patch
+
+import pytest
+
+from timmy.agentic_loop import (
+    AgenticResult,
+    AgenticStep,
+    _broadcast_progress,
+    _parse_steps,
+    run_agentic_loop,
+)
+
+# ── Data structures ──────────────────────────────────────────────────────────
+
+
+class TestAgenticStep:
+    def test_fields(self):
+        step = AgenticStep(
+            step_num=1,
+            description="Do something",
+            result="Done",
+            status="completed",
+            duration_ms=42,
+        )
+        assert step.step_num == 1
+        assert step.description == "Do something"
+        assert step.result == "Done"
+        assert step.status == "completed"
+        assert step.duration_ms == 42
+
+
+class TestAgenticResult:
+    def test_defaults(self):
+        r = AgenticResult(task_id="abc", task="test task", summary="ok")
+        assert r.steps == []
+        assert r.status == "completed"
+        assert r.total_duration_ms == 0
+
+    def test_with_steps(self):
+        step = AgenticStep(1, "s", "r", "completed", 10)
+        r = AgenticResult(task_id="x", task="t", summary="s", steps=[step])
+        assert len(r.steps) == 1
+
+
+# ── _parse_steps ─────────────────────────────────────────────────────────────
+
+
+class TestParseSteps:
+    def test_numbered_dot(self):
+        text = "1. First step\n2. Second step\n3. Third step"
+        assert _parse_steps(text) == ["First step", "Second step", "Third step"]
+
+    def test_numbered_paren(self):
+        text = "1) Alpha\n2) Beta"
+        assert _parse_steps(text) == ["Alpha", "Beta"]
+
+    def test_mixed_whitespace(self):
+        text = "  1. Indented step\n  2. Another  "
+        result = _parse_steps(text)
+        assert result == ["Indented step", "Another"]
+
+    def test_fallback_plain_lines(self):
+        text = "Do this\nDo that\nDo the other"
+        assert _parse_steps(text) == ["Do this", "Do that", "Do the other"]
+
+    def test_empty_string(self):
+        assert _parse_steps("") == []
+
+    def test_blank_lines_skipped_in_fallback(self):
+        text = "line one\n\nline two\n   \nline three"
+        assert _parse_steps(text) == ["line one", "line two", "line three"]
+
+
+# ── _get_loop_agent ──────────────────────────────────────────────────────────
+
+
+class TestGetLoopAgent:
+    def test_creates_agent_once(self):
+        import timmy.agentic_loop as al
+
+        saved = al._loop_agent
+        try:
+            al._loop_agent = None
+            mock_agent = MagicMock()
+            with patch("timmy.agent.create_timmy", return_value=mock_agent):
+                result = al._get_loop_agent()
+                assert result is mock_agent
+                # Second call returns cached
+                result2 = al._get_loop_agent()
+                assert result2 is mock_agent
+        finally:
+            al._loop_agent = saved
+
+    def test_returns_cached(self):
+        import timmy.agentic_loop as al
+
+        saved = al._loop_agent
+        try:
+            sentinel = object()
+            al._loop_agent = sentinel
+            assert al._get_loop_agent() is sentinel
+        finally:
+            al._loop_agent = saved
+
+
+# ── _broadcast_progress ──────────────────────────────────────────────────────
+
+
+class TestBroadcastProgress:
+    @pytest.mark.asyncio
+    async def test_success(self):
+        mock_ws = AsyncMock()
+        with (
+            patch("timmy.agentic_loop.ws_manager", mock_ws, create=True),
+            patch.dict(
+                "sys.modules",
+                {"infrastructure.ws_manager.handler": MagicMock(ws_manager=mock_ws)},
+            ),
+        ):
+            await _broadcast_progress("test.event", {"key": "val"})
+            mock_ws.broadcast.assert_awaited_once_with("test.event", {"key": "val"})
+
+    @pytest.mark.asyncio
+    async def test_import_error_swallowed(self):
+        with patch.dict("sys.modules", {"infrastructure.ws_manager.handler": None}):
+            # Should not raise
+            await _broadcast_progress("test.event", {})
+
+
+# ── run_agentic_loop ─────────────────────────────────────────────────────────
+
+
+def _make_mock_agent(plan_text, step_responses=None):
+    """Create a mock agent whose .run returns predictable content."""
+    call_count = 0
+
+    def run_side_effect(prompt, *, stream=False, session_id=""):
+        nonlocal call_count
+        call_count += 1
+        resp = MagicMock()
+        if call_count == 1:
+            # Planning call
+            resp.content = plan_text
+        else:
+            idx = call_count - 2  # step index (0-based)
+            if step_responses and idx < len(step_responses):
+                val = step_responses[idx]
+                if isinstance(val, Exception):
+                    raise val
+                resp.content = val
+            else:
+                resp.content = f"Step result {call_count}"
+        return resp
+
+    agent = MagicMock()
+    agent.run = MagicMock(side_effect=run_side_effect)
+    return agent
+
+
+@pytest.fixture
+def _patch_broadcast():
+    with patch("timmy.agentic_loop._broadcast_progress", new_callable=AsyncMock):
+        yield
+
+
+@pytest.fixture
+def _patch_clean_response():
+    with patch("timmy.session._clean_response", side_effect=lambda x: x):
+        yield
+
+
+class TestRunAgenticLoop:
+    @pytest.mark.asyncio
+    async def test_successful_execution(self, _patch_broadcast, _patch_clean_response):
+        agent = _make_mock_agent("1. Step A\n2. Step B", ["Result A", "Result B"])
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 10
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch("timmy.agentic_loop.settings", mock_settings, create=True),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=5)
+
+        assert result.status == "completed"
+        assert len(result.steps) == 2
+        assert result.steps[0].status == "completed"
+        assert result.steps[0].description == "Step A"
+        assert result.total_duration_ms >= 0
+
+    @pytest.mark.asyncio
+    async def test_planning_failure(self, _patch_broadcast):
+        agent = MagicMock()
+        agent.run = MagicMock(side_effect=RuntimeError("LLM down"))
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 5
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=3)
+
+        assert result.status == "failed"
+        assert "Planning failed" in result.summary
+
+    @pytest.mark.asyncio
+    async def test_empty_plan(self, _patch_broadcast):
+        agent = _make_mock_agent("")
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 5
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=3)
+
+        assert result.status == "failed"
+        assert "no steps" in result.summary.lower()
+
+    @pytest.mark.asyncio
+    async def test_step_failure_triggers_adaptation(self, _patch_broadcast, _patch_clean_response):
+        agent = _make_mock_agent(
+            "1. Do X\n2. Do Y",
+            [RuntimeError("oops"), "Adapted result", "Y done"],
+        )
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 10
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=5)
+
+        # Step 1 should be adapted, step 2 completed
+        statuses = [s.status for s in result.steps]
+        assert "adapted" in statuses
+
+    @pytest.mark.asyncio
+    async def test_truncation_marks_partial(self, _patch_broadcast, _patch_clean_response):
+        agent = _make_mock_agent(
+            "1. A\n2. B\n3. C\n4. D\n5. E",
+            ["r1", "r2"],
+        )
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 10
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=2)
+
+        assert result.status == "partial"
+
+    @pytest.mark.asyncio
+    async def test_on_progress_callback(self, _patch_broadcast, _patch_clean_response):
+        agent = _make_mock_agent("1. Only step", ["done"])
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 10
+        callback = AsyncMock()
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=5, on_progress=callback)
+
+        callback.assert_awaited_once_with("Only step", 1, 1)
+        assert result.status == "completed"
+
+    @pytest.mark.asyncio
+    async def test_default_max_steps_from_settings(self, _patch_broadcast, _patch_clean_response):
+        agent = _make_mock_agent("1. S1", ["r1"])
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 3
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff")  # max_steps=0 → from settings
+
+        assert result.status == "completed"
+
+    @pytest.mark.asyncio
+    async def test_failed_step_and_failed_adaptation(self, _patch_broadcast, _patch_clean_response):
+        """When both step and adaptation fail, step is marked failed."""
+        call_count = 0
+
+        def run_side_effect(prompt, *, stream=False, session_id=""):
+            nonlocal call_count
+            call_count += 1
+            if call_count == 1:
+                resp = MagicMock()
+                resp.content = "1. Only step"
+                return resp
+            # Both step execution and adaptation fail
+            raise RuntimeError("everything broken")
+
+        agent = MagicMock()
+        agent.run = MagicMock(side_effect=run_side_effect)
+        mock_settings = MagicMock()
+        mock_settings.max_agent_steps = 10
+
+        with (
+            patch("timmy.agentic_loop._get_loop_agent", return_value=agent),
+            patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}),
+        ):
+            result = await run_agentic_loop("do stuff", max_steps=5)
+
+        assert result.steps[0].status == "failed"
+        assert "Failed" in result.steps[0].result
+        assert result.status == "partial"

tests/unit/test_memory_embeddings.py

@@ -0,0 +1,155 @@
+"""Unit tests for timmy.memory.embeddings — embedding, similarity, and keyword overlap."""
+
+import math
+from unittest.mock import MagicMock, patch
+
+import pytest
+
+import timmy.memory.embeddings as emb
+from timmy.memory.embeddings import (
+    _keyword_overlap,
+    _simple_hash_embedding,
+    cosine_similarity,
+    embed_text,
+)
+
+# ── _simple_hash_embedding ──────────────────────────────────────────────────
+
+
+class TestSimpleHashEmbedding:
+    def test_returns_128_dim_vector(self):
+        vec = _simple_hash_embedding("hello world")
+        assert len(vec) == 128
+
+    def test_normalized(self):
+        vec = _simple_hash_embedding("some text for embedding")
+        mag = math.sqrt(sum(x * x for x in vec))
+        assert mag == pytest.approx(1.0, abs=1e-6)
+
+    def test_deterministic(self):
+        a = _simple_hash_embedding("same input")
+        b = _simple_hash_embedding("same input")
+        assert a == b
+
+    def test_different_texts_differ(self):
+        a = _simple_hash_embedding("hello world")
+        b = _simple_hash_embedding("goodbye moon")
+        assert a != b
+
+    def test_empty_string(self):
+        vec = _simple_hash_embedding("")
+        assert len(vec) == 128
+        # All zeros normalised stays zero (mag fallback to 1.0)
+        assert all(x == 0.0 for x in vec)
+
+    def test_long_text_truncates_at_50_words(self):
+        """Words beyond 50 should not change the result."""
+        short = " ".join(f"word{i}" for i in range(50))
+        long = short + " extra1 extra2 extra3"
+        assert _simple_hash_embedding(short) == _simple_hash_embedding(long)
+
+
+# ── cosine_similarity ────────────────────────────────────────────────────────
+
+
+class TestCosineSimilarity:
+    def test_identical_vectors(self):
+        v = [1.0, 2.0, 3.0]
+        assert cosine_similarity(v, v) == pytest.approx(1.0)
+
+    def test_orthogonal_vectors(self):
+        a = [1.0, 0.0]
+        b = [0.0, 1.0]
+        assert cosine_similarity(a, b) == pytest.approx(0.0)
+
+    def test_opposite_vectors(self):
+        a = [1.0, 0.0]
+        b = [-1.0, 0.0]
+        assert cosine_similarity(a, b) == pytest.approx(-1.0)
+
+    def test_zero_vector_returns_zero(self):
+        assert cosine_similarity([0.0, 0.0], [1.0, 2.0]) == 0.0
+        assert cosine_similarity([1.0, 2.0], [0.0, 0.0]) == 0.0
+
+    def test_both_zero_vectors(self):
+        assert cosine_similarity([0.0], [0.0]) == 0.0
+
+
+# ── _keyword_overlap ─────────────────────────────────────────────────────────
+
+
+class TestKeywordOverlap:
+    def test_full_overlap(self):
+        assert _keyword_overlap("hello world", "hello world") == pytest.approx(1.0)
+
+    def test_partial_overlap(self):
+        assert _keyword_overlap("hello world", "hello moon") == pytest.approx(0.5)
+
+    def test_no_overlap(self):
+        assert _keyword_overlap("hello", "goodbye") == pytest.approx(0.0)
+
+    def test_empty_query(self):
+        assert _keyword_overlap("", "anything") == 0.0
+
+    def test_case_insensitive(self):
+        assert _keyword_overlap("Hello World", "hello world") == pytest.approx(1.0)
+
+
+# ── embed_text ───────────────────────────────────────────────────────────────
+
+
+class TestEmbedText:
+    def test_uses_fallback_when_model_disabled(self):
+        with patch.object(emb, "_get_embedding_model", return_value=False):
+            vec = embed_text("test")
+        assert len(vec) == 128  # hash fallback dimension
+
+    def test_uses_model_when_available(self):
+        mock_encoding = MagicMock()
+        mock_encoding.tolist.return_value = [0.1, 0.2, 0.3]
+        mock_model = MagicMock()
+        mock_model.encode.return_value = mock_encoding
+
+        with patch.object(emb, "_get_embedding_model", return_value=mock_model):
+            result = embed_text("test")
+        assert result == pytest.approx([0.1, 0.2, 0.3])
+        mock_model.encode.assert_called_once_with("test")
+
+
+# ── _get_embedding_model ─────────────────────────────────────────────────────
+
+
+class TestGetEmbeddingModel:
+    def setup_method(self):
+        self._saved_model = emb.EMBEDDING_MODEL
+        emb.EMBEDDING_MODEL = None
+
+    def teardown_method(self):
+        emb.EMBEDDING_MODEL = self._saved_model
+
+    def test_skip_embeddings_setting(self):
+        mock_settings = MagicMock()
+        mock_settings.timmy_skip_embeddings = True
+        with patch.dict("sys.modules", {"config": MagicMock(settings=mock_settings)}):
+            emb.EMBEDDING_MODEL = None
+            result = emb._get_embedding_model()
+        assert result is False
+
+    def test_fallback_when_transformers_missing(self):
+        mock_settings = MagicMock()
+        mock_settings.timmy_skip_embeddings = False
+        with patch.dict(
+            "sys.modules",
+            {
+                "config": MagicMock(settings=mock_settings),
+                "sentence_transformers": None,
+            },
+        ):
+            emb.EMBEDDING_MODEL = None
+            result = emb._get_embedding_model()
+        assert result is False
+
+    def test_returns_cached_model(self):
+        sentinel = object()
+        emb.EMBEDDING_MODEL = sentinel
+        assert emb._get_embedding_model() is sentinel