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+# Reference Architecture: MCP Server + SSE Chat on FastAPI
+
+Pattern for adding an MCP server and a streaming chat assistant to an existing FastAPI application with any frontend framework. First built for the [Margaret Hamilton Digital Archive](https://hamilton.warehack.ing) (Starlight + vanilla JS + FastAPI), then adapted for [SpiceBook](https://spicebook.warehack.ing) (Astro SSR + React 19 + FastAPI). Both are in production.
+
+---
+
+## Origin Story
+
+The Hamilton Archive needed a chat assistant that could answer questions about Apollo-era documents using RAG (retrieval-augmented generation). The requirements were:
+
+1. **MCP server** — so Claude Code and other MCP clients could query the archive programmatically
+2. **Chat panel** — floating widget on all pages, streaming LLM responses via SSE, aware of whatever the user was currently reading (a Starlight page, a PDF in the viewer, etc.)
+3. **RAG pipeline** — semantic search → batch SQL fetch → character-budget truncation → LLM completion
+
+This was built as vanilla TypeScript (no framework) because the Hamilton Archive uses Starlight with static output — there's no React, no Zustand, no build-time component hydration. The chat widget is a single 1,125-line `.ts` file that does manual DOM manipulation, localStorage conversation management, and inline Lucide SVG icon paths.
+
+When the same pattern was needed for SpiceBook, the architecture was adapted:
+
+- **Frontend**: React 19 with Zustand for state, split across `ChatWidget.tsx` + `chat-store.ts` + `chat-api.ts`
+- **Context model**: `PageContext(title, path, description)` → `NotebookContext(notebook_id, title, engine)` — the domain changed but the shape is identical
+- **RAG function**: `_build_context(query)` → `_build_notebook_context(req)` — this is the main customization point between deployments
+- **Caddy routing**: per-route `handle` blocks → single `@api.path` matcher — simpler but less precise
+
+**What stays identical** across both projects:
+
+| Component | Identical? | Notes |
+|-----------|:----------:|-------|
+| SSE event protocol | Yes | `status`, `token`, `reasoning`, `error`, `done` |
+| SSE client parser | Yes | `parseSSEBlock()` with `\n\n` boundary detection |
+| `_sse_event()` helper | Yes | Compact JSON formatting |
+| httpx streaming client | Yes | Same timeouts, limits, connection pooling |
+| `_chat_completion_stream()` | Yes | Same SSE line parser for OpenAI-compatible endpoints |
+| MCP mounting pattern | Yes | `mcp.http_app()` + `combine_lifespans()` + `app.mount("/mcp", ...)` |
+| FastMCP tool conventions | Yes | Return `str` (JSON), never raise `HTTPException` |
+| Conversation limits | Yes | MAX_CONVERSATIONS=20, MAX_MESSAGES=50 |
+| Title derivation | Yes | First user message truncated to ~50-60 chars |
+
+---
+
+## Two Frontend Variants
+
+### Variant A: Vanilla TypeScript (Hamilton Archive)
+
+**Single file**: `chat-widget.ts` (1,125 lines) — no framework, no build-time hydration, no npm state library.
+
+**Entry point**:
+```typescript
+// ChatWidget.astro (11 lines)
+import { initChatWidget } from './chat-widget.ts'
+initChatWidget()
+document.addEventListener('astro:after-swap', initChatWidget)
+```
+
+**State management**: Module-scoped variables + direct localStorage:
+```typescript
+const STORAGE_KEY_INDEX  = 'hamilton-chat-conversations'
+const STORAGE_KEY_ACTIVE = 'hamilton-chat-active'
+const STORAGE_KEY_PREFIX = 'hamilton-chat-conv-'
+const STORAGE_KEY_LEGACY = 'hamilton-chat-history'  // flat format, auto-migrated
+```
+
+Storage uses a split architecture: an index array (conversation metadata) stored separately from individual conversation message arrays (`STORAGE_KEY_PREFIX + id`). This avoids loading all message content when just rendering the history list.
+
+**DOM manipulation**: `data-open`/`data-view` attributes on the widget root element control CSS visibility. Rendering is imperative — `renderMessages()`, `renderHistoryList()`, etc. Lucide icons are pasted as inline SVG path strings (no icon library dependency).
+
+**Key advantage**: Zero JS framework overhead. The widget works in any static site (Starlight, plain HTML, Hugo) because it only needs a `<script>` tag.
+
+**Key disadvantage**: All UI logic (event listeners, DOM updates, scroll management, thinking indicators) lives in one file. A conversation switch requires careful manual capture of `streamingText` before aborting the SSE stream. React's declarative model handles this more cleanly.
+
+### Variant B: React + Zustand (SpiceBook)
+
+**Three files**: `ChatWidget.tsx` (component), `chat-store.ts` (state), `chat-api.ts` (network).
+
+**State management**: Zustand with `persist` middleware:
+```typescript
+export const useChatStore = create<ChatStore>()(
+  persist(
+    (set, get) => ({ /* actions */ }),
+    {
+      name: 'spicebook-chat',
+      partialize: (state) => ({
+        conversations: state.conversations,
+        activeConversationId: state.activeConversationId,
+      }),
+    },
+  ),
+);
+```
+
+The `partialize` function excludes transient state (`panelOpen`, `streaming`) from persistence — only conversation data survives page reloads.
+
+**SSE client**: Separate async generator in `chat-api.ts`:
+```typescript
+export async function* streamChat(opts: ChatStreamOptions): AsyncGenerator<SSEEvent> {
+  const resp = await fetch(`${API_BASE}/api/chat/stream`, { ... });
+  const reader = resp.body?.getReader();
+  const decoder = new TextDecoder();
+  let buffer = '';
+  // ... parse SSE blocks by \n\n boundary
+}
+```
+
+**Context awareness**: Reads from the notebook store (`useNotebookStore`) to pass `NotebookContext` to the API:
+```typescript
+interface ChatStreamOptions {
+  question: string;
+  notebook?: { notebook_id: string; title: string; engine: string } | null;
+  signal?: AbortSignal;
+}
+```
+
+**Key advantage**: Declarative state updates. `appendToLastAssistant(chunk)` immutably updates the conversation array — no manual DOM sync needed.
+
+**Key disadvantage**: Requires React hydration. Uses `client:load` in Astro, which means the widget JS downloads and executes on every page load.
+
+---
+
+## Backend Architecture
+
+### 1. MCP Server Module
+
+Both projects use the same layout:
+
+```
+backend/src/myapp/
+  mcp/
+    __init__.py    # FastMCP singleton + import side-effects
+    tools.py       # @mcp.tool() functions wrapping domain logic
+    chat.py        # (Hamilton only) RAG tool + LLM client
+```
+
+**Hamilton** registers tools in **two files**: `mcp/tools.py` (search, browse, stats) AND `mcp/chat.py` (the `ask_hamilton` RAG tool + LLM client). The RAG tool lives alongside the streaming client because they share `_build_context()` and `_chat_completion()`.
+
+**SpiceBook** keeps **all tools in `mcp/tools.py`** and the LLM client in a separate `chat/llm.py` module. The chat backend doesn't register any MCP tools — it's purely an HTTP endpoint.
+
+```python
+# Hamilton: mcp/__init__.py
+import hamilton_search.mcp.chat   # Registers ask_hamilton tool
+import hamilton_search.mcp.tools  # Registers search_archive, get_document, etc.
+
+# SpiceBook: mcp/__init__.py
+import spicebook.mcp.tools        # Registers list_all_notebooks, simulate_netlist, etc.
+```
+
+**Hamilton MCP tools use `Literal` types** for constrained parameters:
+```python
+ContentType = Literal[
+    "page", "paper_summary", "source_note", "essay",
+    "archive", "agc_source", "apollo_context", "agc_highlight",
+]
+
+@mcp.tool()
+async def search_archive(
+    query: str,
+    mode: Literal["hybrid", "semantic", "text"] = "hybrid",
+    content_type: ContentType | None = None,
+    limit: int = 10,
+) -> str:
+```
+
+SpiceBook tools use plain `str` parameters for engine names because there are only two options (`ngspice`, `ltspice`) and validation happens in the engine factory.
+
+### 2. Context Building — The Main Customization Point
+
+The `_build_context()` function is where each deployment diverges. Everything else (SSE framing, LLM streaming, MCP mounting) is reusable.
+
+#### Hamilton: `_build_context(query)` — RAG with Semantic Search
+
+```python
+async def _build_context(query: str) -> tuple[str, list[dict]]:
+    """Search archive and batch-fetch full document bodies for RAG context."""
+    async with async_session() as db:
+        # 1. Hybrid search (semantic + text) for top 5 results
+        output = await search_documents(q=query, db=db, mode="hybrid", limit=5)
+
+        # 2. Batch fetch all documents in one SQL query
+        slugs = [r.slug for r in output.results]
+        docs_result = await db.execute(
+            select(Document).where(Document.slug.in_(slugs))
+        )
+        docs_by_slug = {doc.slug: doc for doc in docs_result.scalars()}
+
+    # 3. Build context string with character-budget truncation
+    context_parts = []
+    chars_used = 0
+    for slug in slugs:  # preserve search result ordering
+        doc = docs_by_slug.get(slug)
+        remaining = MAX_CONTEXT_CHARS - chars_used  # MAX_CONTEXT_CHARS = 2000
+        if remaining <= 0:
+            break
+        body = doc.body[:remaining] + "..." if len(doc.body) > remaining else doc.body
+        context_parts.append(f"--- {doc.title} (/{doc.slug}) ---\n{body}")
+        chars_used += len(body)
+
+    return "\n\n".join(context_parts), sources
+```
+
+**Pattern**: Search → batch fetch → budget truncation. The two-phase fetch (search for slugs, then `SELECT ... WHERE slug IN (...)`) avoids N+1 queries. Character-budget truncation preserves document ordering from search relevance while staying within LLM context limits.
+
+**Returns**: `(context_text, sources_list)` — the sources list is forwarded to the frontend as an SSE `sources` event so the chat widget can render clickable links.
+
+#### SpiceBook: `_build_notebook_context(req)` — Notebook Content Extraction
+
+```python
+async def _build_notebook_context(req: ChatStreamRequest) -> str:
+    """Extract SPICE cells and markdown notes from the notebook."""
+    if not req.notebook or not req.notebook.notebook_id:
+        return ""
+
+    nb = await asyncio.to_thread(load_notebook, settings.notebook_dir, req.notebook.notebook_id)
+    if nb is None:
+        return ""
+
+    parts = [f'Notebook: "{nb.metadata.title}" (engine: {nb.metadata.engine})']
+
+    for i, cell in enumerate(nb.cells):
+        if cell.type.value == "spice" and cell.source.strip():
+            parts.append(f"\n--- SPICE Cell {i + 1} ---\n{cell.source.strip()}")
+            # Include latest simulation result summary
+            for output in cell.outputs:
+                if output.output_type in ("simulation_result", "error"):
+                    if not output.data.get("success") and output.data.get("error"):
+                        parts.append(f"  [Simulation error: {output.data['error']}]")
+                    elif output.data.get("success") and output.data.get("waveform"):
+                        wf = output.data["waveform"]
+                        var_names = [v.get("name", "") for v in wf.get("variables", [])]
+                        parts.append(f"  [Simulation OK: {wf.get('points')} points, signals: {', '.join(var_names)}]")
+                    break
+        elif cell.type.value == "markdown" and cell.source.strip():
+            parts.append(f"\n--- Notes ---\n{cell.source.strip()[:500]}")
+
+    return "\n".join(parts)
+```
+
+**Pattern**: Load → iterate cells → extract domain content. No search step — the user is already viewing a specific notebook, so we load it directly and extract the SPICE netlists plus their latest simulation results. Markdown notes are truncated to 500 chars.
+
+**Returns**: Just a `str` — no sources list because there's nothing to cite. The context is the notebook itself.
+
+> **Async I/O**: Note `asyncio.to_thread(load_notebook, ...)` — `load_notebook()` uses synchronous `path.read_text()`, which blocks the asyncio event loop. Without `to_thread()`, every chat request briefly freezes *all* other async handlers (health checks, notebook API, other chat streams). This was caught during live debugging when concurrent requests stalled.
+
+### 3. Page Context — What the User Is Looking At
+
+Both projects prepend context about what the user is currently viewing to the question string. The shapes differ but the pattern is identical.
+
+#### Hamilton: `PageContext(title, path, description)`
+
+```python
+class PageContext(BaseModel):
+    title: str = Field("", max_length=200)
+    path: str = Field("", max_length=500)
+    description: str = Field("", max_length=500)
+
+    @field_validator("path")
+    @classmethod
+    def path_must_be_relative(cls, v: str) -> str:
+        if v and not v.startswith("/"):
+            raise ValueError("Path must start with /")
+        return v
+```
+
+Frontend detection is viewer-aware — Hamilton has a PDF viewer page that exposes `window.__hamiltonSourceMap` and `window.__pdfMetadata`. The `getPageContext()` function reads the current PDF page number from the viewer DOM, appends PDF metadata (author, creation date), and falls back to standard Starlight `<main h1>` detection:
+
+```typescript
+function getPageContext(): { title: string; path: string; description: string } | null {
+  if (location.pathname === '/viewer' || location.pathname === '/viewer/') {
+    // Read from source map + viewer state
+    const titleWithPage = `${docTitle} (page ${currentPage} of ${total})`;
+    // ... append PDF metadata (Author, Created, Subject, Pages)
+    return { title: titleWithPage, path, description };
+  }
+  // Standard Starlight page
+  const title = document.querySelector('main h1')?.textContent?.trim();
+  return { title, path: location.pathname, description: meta.content };
+}
+```
+
+Backend prepends the context as a bracketed string:
+```python
+if req.page and req.page.title:
+    page_context = f'[The user is currently reading: "{req.page.title}" ({req.page.path})'
+    if req.page.description:
+        page_context += f"\nDocument description: {req.page.description}"
+    page_context += "]\n\n"
+    question = page_context + req.question
+```
+
+#### SpiceBook: `NotebookContext(notebook_id, title, engine)`
+
+```python
+class NotebookContext(BaseModel):
+    notebook_id: str = Field("", max_length=200)
+    title: str = Field("", max_length=200)
+    engine: str = Field("ngspice", max_length=50)
+```
+
+No path validation needed — notebook IDs are used for `load_notebook()`, which already validates against the filesystem. The backend prepends:
+```python
+if req.notebook and req.notebook.title:
+    question = f'[User is viewing notebook: "{nb_title}" ({nb_engine})]\n\n' + req.question
+```
+
+### 4. System Prompt
+
+Both use `/no_think\n` as the first line to suppress reasoning on models that support it (e.g., Qwen3). This saves tokens since the chat assistant doesn't need to show its reasoning process.
+
+```python
+# Hamilton
+SYSTEM_PROMPT = (
+    "/no_think\n"
+    "You are a knowledgeable research assistant for the Margaret Hamilton Digital Archive. "
+    "Answer questions using ONLY the provided context from the archive. "
+    "If the context doesn't contain enough information, say so clearly. "
+    "Cite specific documents by title when referencing information. "
+    "Be precise and factual — never fabricate quotes or claims."
+)
+
+# SpiceBook
+SYSTEM_PROMPT = (
+    "/no_think\n"
+    "You are a circuit simulation assistant integrated into SpiceBook, "
+    "a notebook environment for SPICE circuit design and simulation. "
+    "Help users understand circuits, debug netlists, interpret simulation "
+    "results, and design new circuits. ..."
+)
+```
+
+### 5. SSE Streaming Endpoint
+
+The endpoint structure is identical. Hamilton adds a `sources` event and has a pre-search status flow; SpiceBook skips straight to streaming.
+
+```python
+# Hamilton: yields status → sources → tokens → done
+async def generate():
+    yield _sse_event("status", {"text": "Searching the archive…"})
+    context, sources = await _build_context(question)
+    yield _sse_event("status", {"text": f"Found {n} relevant documents…"})
+    yield _sse_event("sources", sources)  # ← Hamilton-specific
+    async for kind, text in _chat_completion_stream(context, question):
+        yield _sse_event("reasoning" if kind == "reasoning" else "token", {"text": text})
+    yield _sse_event("done", {})
+
+# SpiceBook: yields status → tokens → done
+async def generate():
+    context = _build_notebook_context(req)
+    yield _sse_event("status", {"text": "Analyzing circuit context…"})
+    async for kind, text in chat_completion_stream(context, question):
+        yield _sse_event("reasoning" if kind == "reasoning" else "token", {"text": text})
+    yield _sse_event("done", {})
+```
+
+### 6. Mount MCP on FastAPI
+
+```python
+from contextlib import asynccontextmanager
+from fastmcp.utilities.lifespan import combine_lifespans
+
+@asynccontextmanager
+async def lifespan(app: FastAPI):
+    yield
+    await close_client()  # Clean up httpx client
+
+mcp_app = mcp.http_app(path="/", stateless_http=True)
+
+app = FastAPI(
+    title="MyApp",
+    lifespan=combine_lifespans(lifespan, mcp_app.lifespan),
+)
+
+# Register routers FIRST
+app.include_router(chat_router)
+app.include_router(other_router)
+
+# Mount MCP LAST (catch-all)
+app.mount("/mcp", mcp_app)
+```
+
+> **Critical ordering**: `include_router()` before `app.mount("/mcp", ...)`. FastAPI mounts are catch-all — if MCP is mounted first, it swallows routes that share a prefix.
+
+### 7. Domain Error Decoupling
+
+Domain logic must not raise `HTTPException` — it breaks MCP tools which don't run through FastAPI's exception handling. Use domain-specific exceptions:
+
+```python
+# Domain layer: raises ValueError
+def get_engine(name: str) -> Engine:
+    if name not in ENGINES:
+        raise UnsupportedEngineError(f"Unsupported: '{name}'")
+
+# HTTP router: converts at boundary
+try:
+    engine = get_engine(req.engine)
+except UnsupportedEngineError as exc:
+    raise HTTPException(status_code=400, detail=str(exc))
+
+# MCP tool: lets ValueError propagate — FastMCP converts to MCP error
+@mcp.tool()
+async def simulate(netlist: str, engine: str = "ngspice") -> str:
+    eng = get_engine(engine)  # ValueError propagates naturally
+```
+
+---
+
+## Conversation Management Patterns
+
+### Hamilton: Manual localStorage with Legacy Migration
+
+Hamilton stores conversations in a split format: an index array of metadata and individual conversation arrays keyed by ID. It also migrates from an older flat format:
+
+```typescript
+function migrateFromLegacy(): void {
+  const raw = localStorage.getItem(STORAGE_KEY_LEGACY);
+  if (!raw) return;
+  // Parse flat message array → create new conversation → save to indexed format
+  localStorage.removeItem(STORAGE_KEY_LEGACY);
+}
+```
+
+**Title derivation** uses `deriveTitle()` — takes the first user message, truncates to `TITLE_MAX_LENGTH` (60 chars), and updates the index entry on save. The title stays "New conversation" until the first `saveHistory()` call.
+
+**Two-click delete with auto-revert**:
+
+```typescript
+function handleDelete(id: string): void {
+  if (pendingDeleteId === id) {
+    // Second click within 3s — confirm deletion
+    clearPendingDelete();
+    performDelete(id);
+  } else {
+    // First click — show "Delete?" label, start 3s timer
+    clearPendingDelete();
+    pendingDeleteId = id;
+    pendingDeleteTimer = window.setTimeout(() => {
+      pendingDeleteId = null;
+      pendingDeleteTimer = null;
+      if (viewMode === 'history') renderHistoryList();  // revert UI
+    }, 3000);
+    renderHistoryList();
+  }
+}
+```
+
+This prevents accidental deletions without a modal dialog. The 3-second auto-revert means the user doesn't have to click "cancel" if they change their mind.
+
+### SpiceBook: Zustand `persist` Middleware
+
+SpiceBook's `useChatStore` handles the same patterns declaratively:
+
+```typescript
+createConversation: () => {
+  const id = generateId();
+  set((s) => ({
+    conversations: [conv, ...s.conversations].slice(0, MAX_CONVERSATIONS),
+    activeConversationId: id,
+  }));
+  return id;
+},
+
+addUserMessage: (text: string) => {
+  set((s) => ({
+    conversations: s.conversations.map((c) => {
+      if (c.id !== convId) return c;
+      const title = c.messages.length === 0 ? titleFromQuestion(text) : c.title;
+      return { ...c, messages: [...c.messages, msg].slice(-MAX_MESSAGES), title, updatedAt: now };
+    }),
+  }));
+},
+```
+
+Zustand's `persist` middleware handles serialization and localStorage automatically. The `partialize` function excludes transient state. Deletion is a simple `filter()`.
+
+### SSE Stream State Capture (Hamilton-Specific Edge Case)
+
+Hamilton captures `streamingText` at widget scope so conversation switches can save partial text before aborting:
+
+```typescript
+// Module-level state (not per-conversation)
+let streamingText = '';
+let streamingSources: ChatSource[] = [];
+let conversationSwitchInProgress = false;
+
+function startNewConversation(): void {
+  // Capture partial streaming text BEFORE aborting
+  if (abortController && streamingText) {
+    messages.push({
+      role: 'assistant',
+      text: streamingText,
+      sources: streamingSources.length ? streamingSources : undefined,
+    });
+    streamingText = '';
+    streamingSources = [];
+  }
+
+  if (abortController) {
+    conversationSwitchInProgress = true;  // suppress error handler
+    abortController.abort();
+    abortController = null;
+  }
+
+  saveHistory();
+  createNewConversation();
+  messages = [];
+}
+```
+
+The `conversationSwitchInProgress` flag is needed because aborting the SSE stream fires the error handler. Without the flag, the error handler would try to save a partial message to the *wrong* conversation (the one we just switched away from).
+
+SpiceBook handles this more simply — React's `useRef` for the AbortController plus Zustand's immutable updates mean the conversation ID is captured in the closure, so there's no risk of writing to the wrong conversation.
+
+---
+
+## Caddy Configuration
+
+### Hamilton: Per-Route `handle` Blocks
+
+Hamilton uses numbered `caddy.handle_N` labels with independent reverse proxy configs per route:
+
+```yaml
+labels:
+  caddy: ${PUBLIC_DOMAIN:-hamilton.l.warehack.ing}
+
+  # Search API — standard proxy, no SSE
+  caddy.handle: /api/search*
+  caddy.handle.0_reverse_proxy: "{{upstreams 8000}}"
+
+  # Health endpoint
+  caddy.handle_1: /health
+  caddy.handle_1.0_reverse_proxy: "{{upstreams 8000}}"
+
+  # MCP endpoint — standard proxy
+  caddy.handle_2: /mcp*
+  caddy.handle_2.0_reverse_proxy: "{{upstreams 8000}}"
+
+  # Chat streaming — SSE-optimized proxy
+  caddy.handle_3: /api/chat*
+  caddy.handle_3.0_reverse_proxy: "{{upstreams 8000}}"
+  caddy.handle_3.0_reverse_proxy.flush_interval: "-1"
+  caddy.handle_3.0_reverse_proxy.transport: "http"
+  caddy.handle_3.0_reverse_proxy.transport.read_timeout: "0"
+  caddy.handle_3.0_reverse_proxy.transport.write_timeout: "0"
+```
+
+**Advantage**: SSE streaming labels (`flush_interval`, `read_timeout`, `write_timeout`) only apply to `/api/chat*`. Non-streaming routes like `/api/search*` and `/mcp*` use Caddy's default buffering and timeouts, which is more efficient for short-lived requests.
+
+### SpiceBook: Single `@api.path` Matcher
+
+SpiceBook groups all backend routes under one path matcher:
+
+```yaml
+labels:
+  caddy: "${SPICEBOOK_DOMAIN:-spicebook.localhost}"
+
+  # All backend routes go through one matcher with SSE settings
+  caddy.@api.path: "/api/* /health /docs /openapi.json /redoc /mcp/*"
+  caddy.reverse_proxy_0: "@api {{upstreams 8000}}"
+  caddy.reverse_proxy_0.flush_interval: "-1"
+  caddy.reverse_proxy_0.transport: "http"
+  caddy.reverse_proxy_0.transport.read_timeout: "0"
+  caddy.reverse_proxy_0.transport.write_timeout: "0"
+  caddy.reverse_proxy_0.stream_timeout: "24h"
+  caddy.reverse_proxy_0.stream_close_delay: "5s"
+```
+
+**Advantage**: Simpler — one block instead of four. Adding new API routes just means adding to the path list.
+
+**Disadvantage**: SSE streaming settings apply to *all* backend routes, including `/health` and `/docs`. The `read_timeout: 0` means Caddy will never close idle connections to the health endpoint, which is wasteful (though harmless in practice).
+
+### Comparison Table
+
+| Aspect | Hamilton (`handle` blocks) | SpiceBook (`@api.path` matcher) |
+|--------|----------------------------|--------------------------------|
+| Label count | ~12 labels across 4 handles | ~8 labels in 1 matcher |
+| SSE scope | Only `/api/chat*` | All backend routes |
+| Adding routes | New `handle_N` block | Append to path list |
+| Timeout precision | Per-route control | Blanket settings |
+| Complexity | Higher | Lower |
+| Recommended for | Multi-protocol backends (SSE + gRPC + REST) | Simple REST + SSE backends |
+
+### SSE-Required Labels (Both Approaches)
+
+These labels are **mandatory** for SSE streaming through Caddy. Without them, Caddy buffers responses and/or times out long-lived connections:
+
+```yaml
+caddy.reverse_proxy.flush_interval: "-1"     # Disable response buffering
+caddy.reverse_proxy.transport: "http"
+caddy.reverse_proxy.transport.read_timeout: "0"   # No read timeout
+caddy.reverse_proxy.transport.write_timeout: "0"  # No write timeout
+caddy.reverse_proxy.stream_timeout: "24h"         # WebSocket/SSE lifetime
+caddy.reverse_proxy.stream_close_delay: "5s"      # Graceful close on reload
+```
+
+Also set these headers on the `StreamingResponse`:
+```python
+return StreamingResponse(
+    generate(),
+    media_type="text/event-stream",
+    headers={
+        "Cache-Control": "no-cache",
+        "X-Accel-Buffering": "no",  # Disable nginx/proxy buffering
+    },
+)
+```
+
+---
+
+## SSE Event Protocol
+
+Both projects use this consistent event protocol:
+
+| Event | Payload | Meaning |
+|-------|---------|---------|
+| `status` | `{"text": "..."}` | Status message (e.g., "Thinking...", "Searching the archive...") |
+| `sources` | `[{title, slug, url, score}]` | Hamilton only: search results for citation links |
+| `token` | `{"text": "..."}` | Content token from the LLM |
+| `reasoning` | `{"text": "..."}` | Reasoning/thinking token (if model supports it) |
+| `error` | `{"text": "..."}` | Error message to display to user |
+| `done` | `{}` | Stream complete |
+
+**SSE formatting**: Use `json.dumps(data, separators=(",",":"))` (compact, no spaces) to prevent newline fragility in SSE framing. A stray `\n` in the JSON payload would split the SSE block.
+
+---
+
+## Security Hardening
+
+These were identified during Apollo code review of the Hamilton Archive and applied retroactively. Each fix below references the original vulnerability.
+
+### 1. HTTP Client Race Condition
+
+**Hamilton vulnerability**: `_get_chat_client()` was a **sync** function with no lock:
+
+```python
+# VULNERABLE (Hamilton original)
+def _get_chat_client() -> httpx.AsyncClient:
+    global _chat_client
+    if _chat_client is None or _chat_client.is_closed:
+        _chat_client = httpx.AsyncClient(...)  # race condition here
+    return _chat_client
+```
+
+Two concurrent requests could both see `_chat_client is None`, both create a new client, and the first client would be leaked (never closed). Under load this causes connection pool exhaustion.
+
+**Fix**: Use `asyncio.Lock()` with double-checked locking:
+
+```python
+# FIXED (SpiceBook, applied back to reference)
+_client_lock = asyncio.Lock()
+
+async def _get_chat_client() -> httpx.AsyncClient:
+    global _chat_client
+    if _chat_client is not None and not _chat_client.is_closed:
+        return _chat_client
+    async with _client_lock:
+        if _chat_client is not None and not _chat_client.is_closed:
+            return _chat_client
+        _chat_client = httpx.AsyncClient(...)
+        return _chat_client
+```
+
+The double-check avoids acquiring the lock on every call — only the first caller (or after client closure) takes the lock.
+
+### 2. Streaming Error Bodies
+
+**Hamilton vulnerability**: Used `resp.raise_for_status()` inside `client.stream()` context:
+
+```python
+# VULNERABLE (Hamilton original)
+async with client.stream("POST", url, ...) as resp:
+    resp.raise_for_status()  # ← error body is empty in streaming context
+```
+
+Inside a streaming context, the response body hasn't been read yet. `raise_for_status()` creates an `HTTPStatusError` with an empty body, making it impossible to diagnose the upstream error.
+
+**Fix**: Read the error body explicitly before raising:
+
+```python
+# FIXED (SpiceBook)
+async with client.stream("POST", url, ...) as resp:
+    if resp.status_code >= 400:
+        body = await resp.aread()
+        error_text = body[:500].decode("utf-8", errors="replace")
+        logger.error("LLM gateway returned %d: %s", resp.status_code, error_text)
+        raise httpx.HTTPStatusError(
+            f"LLM gateway error {resp.status_code}",
+            request=resp.request,
+            response=resp,
+        )
+```
+
+### 3. Bare Exception Handling in Stream
+
+**Hamilton vulnerability**: Used bare `except Exception` in the streaming endpoint:
+
+```python
+# VULNERABLE (Hamilton original)
+try:
+    async for kind, text in _chat_completion_stream(context, question):
+        yield _sse_event(...)
+except Exception:
+    logger.exception("Chat stream completion failed")
+    yield _sse_event("error", {"text": "Chat completion unavailable"})
+```
+
+This catches `asyncio.CancelledError` (a `BaseException` subclass in Python 3.9+, but still caught by careless patterns), `KeyboardInterrupt`, and other exceptions that should propagate. It also swallows the traceback context for debugging.
+
+**Fix**: Catch specific `httpx` exceptions:
+
+```python
+# FIXED (SpiceBook)
+try:
+    async for kind, text in chat_completion_stream(context, question):
+        yield _sse_event(...)
+except (
+    httpx.HTTPStatusError,
+    httpx.ConnectError,
+    httpx.ReadTimeout,
+    httpx.PoolTimeout,
+    httpx.ConnectTimeout,
+) as exc:
+    logger.warning("Chat stream failed: %s", exc)
+    yield _sse_event("error", {"text": "Chat service unavailable"})
+    return
+except asyncio.CancelledError:
+    logger.debug("Chat stream cancelled by client disconnect")
+    return
+```
+
+### 4. Path Traversal Protection
+
+**Hamilton context**: Not directly vulnerable because it uses SQL (slugs are database lookups, not file paths). But filesystem-based apps like SpiceBook that construct paths from user IDs need validation:
+
+```python
+import re
+
+_SAFE_ID_RE = re.compile(r"^[a-z0-9][a-z0-9\-]{0,198}[a-z0-9]$")
+
+def validate_item_id(item_id: str) -> str:
+    if not _SAFE_ID_RE.match(item_id):
+        raise ValueError(f"Invalid item ID: {item_id!r}")
+    return item_id
+```
+
+### 5. Compact SSE JSON
+
+Use `json.dumps(data, separators=(",",":"))` in `_sse_event()` to prevent newline fragility. Hamilton's original used default separators (`", "`, `": "`) which are fine for most payloads but can introduce visual confusion in debugging.
+
+### Security Checklist
+
+- [ ] **HTTP client init**: `asyncio.Lock()` with double-checked locking for lazy singleton
+- [ ] **Streaming errors**: `resp.aread()` before raising on HTTP errors inside `client.stream()`
+- [ ] **Specific exceptions**: Catch named `httpx.*` exceptions, not bare `Exception`
+- [ ] **CancelledError handling**: Explicit `except asyncio.CancelledError` in SSE generators
+- [ ] **Path traversal**: Validate user-provided IDs with regex before constructing file paths
+- [ ] **Error decoupling**: Domain logic raises `ValueError`, not `HTTPException`
+- [ ] **Compact SSE JSON**: `json.dumps(data, separators=(",",":"))` to prevent newline fragility
+- [ ] **SSE response headers**: `Cache-Control: no-cache` + `X-Accel-Buffering: no`
+- [ ] **Input validation**: `max_length` on all string fields in Pydantic models
+- [ ] **Shutdown cleanup**: `close_client()` in lifespan shutdown to drain connection pool
+
+---
+
+## Frontend Lessons Learned
+
+### 1. Markdown Rendering: Use a Library, Not Regex
+
+LLM responses contain unpredictable markdown: headers, nested lists, tables, blockquotes, fenced code blocks with language tags, horizontal rules. Hand-rolled regex cannot handle all of this.
+
+**Hamilton's approach** — lightweight regex in `renderMarkdown()`:
+```typescript
+// Hamilton: handles bold, italic, inline code, links, line breaks
+function renderMarkdown(text: string): string {
+  let html = escapeHtml(text);
+  html = html.replace(/\*\*(.+?)\*\*/g, '<strong>$1</strong>');
+  html = html.replace(/(?<!\*)\*([^*]+?)\*(?!\*)/g, '<em>$1</em>');
+  html = html.replace(/`([^`]+?)`/g, '<code>$1</code>');
+  // ... links, newlines
+  return html;
+}
+```
+
+This works for the Hamilton Archive because its RAG context produces shorter, less complex responses. It fails badly for SpiceBook where the LLM generates full tutorials with headers, numbered lists, tables, and code blocks.
+
+**SpiceBook's approach** — `marked` + `DOMPurify`:
+```typescript
+import { marked } from 'marked';
+import DOMPurify from 'dompurify';
+
+marked.setOptions({ breaks: true, gfm: true });
+
+function renderMarkdown(text: string): string {
+  const raw = marked.parse(text, { async: false }) as string;
+  return DOMPurify.sanitize(raw, { ADD_ATTR: ['target'] });
+}
+```
+
+**Why both layers**: `marked` handles all GFM syntax (tables, task lists, fenced code). `DOMPurify` strips XSS vectors from the HTML output — critical because the result goes into `dangerouslySetInnerHTML`. The `ADD_ATTR: ['target']` preserves `target="_blank"` on links.
+
+**Cost**: `marked` is ~13 KB gzipped with full GFM support. Worth it for any chat widget where LLM output is unpredictable.
+
+**Recommendation**: Start with `marked` + `DOMPurify` in new projects. Drop to regex only if you control the LLM output format (e.g., RAG with structured templates).
+
+### 2. React 19 Automatic Batching Breaks SSE Streaming
+
+React 19's automatic batching coalesces all `setState` calls within an async function into a single render. When the `for await...of` SSE loop processes many tokens from one `reader.read()` chunk, React defers rendering until the loop yields to the event loop — which means the user sees nothing until the entire stream finishes.
+
+**The symptom**: Chat shows the first partial render (from the initial SSE chunk boundary), then freezes, then shows everything at once when the stream ends.
+
+**Root cause in React 19**:
+```typescript
+// This produces ONE render at stream end, not N renders per token:
+for await (const evt of streamChat({ question })) {
+  if (evt.event === 'token') {
+    appendToLastAssistant(evt.data.text);  // setState call
+    // React batches this ↑ — no re-render happens here
+  }
+}
+// React renders ONCE here, after the loop exits
+```
+
+**Fix — `requestAnimationFrame` token batching**:
+
+Accumulate tokens in a `useRef` (no re-render per token), then flush to Zustand state once per animation frame (~60fps). This gives smooth incremental streaming without overwhelming React:
+
+```typescript
+// Refs (no re-render on write)
+const pendingTokensRef = useRef('');
+const flushRafRef = useRef(0);
+
+// Inside the SSE event loop:
+case 'token':
+  pendingTokensRef.current += evt.data.text;
+  if (!flushRafRef.current) {
+    flushRafRef.current = requestAnimationFrame(() => {
+      if (pendingTokensRef.current) {
+        appendToLastAssistant(pendingTokensRef.current);
+        pendingTokensRef.current = '';
+      }
+      flushRafRef.current = 0;
+    });
+  }
+  break;
+
+// In the finally block — flush remaining buffered tokens:
+finally {
+  if (flushRafRef.current) {
+    cancelAnimationFrame(flushRafRef.current);
+    flushRafRef.current = 0;
+  }
+  if (pendingTokensRef.current) {
+    appendToLastAssistant(pendingTokensRef.current);
+    pendingTokensRef.current = '';
+  }
+  setStreaming(false);
+}
+```
+
+**Why this works**: `requestAnimationFrame` fires once per display frame (~16ms at 60fps). Multiple tokens arriving within one frame get concatenated in the ref and flushed as a single `appendToLastAssistant` call — which triggers exactly one React render per frame. The browser gets to paint between frames, so the user sees smooth incremental text.
+
+**Why `useRef` instead of `useState`**: Writing to a ref doesn't trigger a render. If we used `useState` for the accumulator, we'd be back to the same batching problem.
+
+**Hamilton doesn't need this** because its vanilla JS `sendQuestion()` function writes directly to `bubble.innerHTML` — no framework batching layer.
+
+### 3. Streaming Verification Checklist
+
+When SSE streaming appears broken, check each layer in order. The issue is usually at exactly one layer:
+
+| Layer | Check | Symptom if broken |
+|-------|-------|-------------------|
+| **GPU gateway** | `curl -N $GPU_BASE_URL/chat/completions` with `"stream": true` | No tokens arrive at all |
+| **Backend httpx** | `print()` inside `aiter_lines()` loop | Tokens arrive at backend but not forwarded |
+| **Backend sync I/O** | Check for `path.read_text()`, `open().read()` in async functions | First token delayed by seconds; concurrent requests stall |
+| **FastAPI StreamingResponse** | `curl -N http://localhost:8099/api/chat/stream` | Tokens stream from backend but not through proxy |
+| **Caddy proxy** | Check `flush_interval: "-1"` label | All tokens arrive at once when stream ends |
+| **Frontend fetch/reader** | `console.log()` in `reader.read()` loop | Tokens arrive in browser but UI doesn't update |
+| **React rendering** | Check for RAF batching pattern | UI updates once at stream end (React 19 batching) |
+
+**The `asyncio.to_thread()` gotcha**: Any synchronous I/O in an `async def` function blocks the entire event loop. This doesn't just delay the current request — it freezes *all* concurrent async handlers (health checks, other chat streams, notebook API). Wrap sync I/O with `asyncio.to_thread()`:
+
+```python
+# BROKEN: blocks event loop during file read
+async def _build_notebook_context(req):
+    nb = load_notebook(settings.notebook_dir, req.notebook.notebook_id)  # sync!
+
+# FIXED: runs sync I/O in a thread pool worker
+async def _build_notebook_context(req):
+    nb = await asyncio.to_thread(load_notebook, settings.notebook_dir, req.notebook.notebook_id)
+```
+
+---
+
+## Configuration
+
+### Environment Variables
+
+```env
+# GPU LLM gateway
+GPU_API_KEY=your-api-key
+GPU_BASE_URL=https://your-app.gpu.supported.systems/v1
+GPU_CHAT_MODEL=qwen3
+CHAT_MAX_TOKENS=8192
+```
+
+### Docker Compose: `environment` vs `env_file`
+
+`env_file` passes values **literally** from the `.env` file — no variable interpolation. The `environment` section supports `${VAR}` interpolation from the host environment and the `.env` file.
+
+```yaml
+services:
+  frontend:
+    env_file: .env           # Passes GPU_API_KEY=abc123 literally
+    environment:
+      # Interpolates SPICEBOOK_DOMAIN from .env, with fallback
+      - PUBLIC_API_URL=https://${SPICEBOOK_DOMAIN:-localhost:4321}
+```
+
+This matters when a build-time variable (like `PUBLIC_API_URL`) needs to be constructed from a runtime variable (like `SPICEBOOK_DOMAIN`). You can't do string interpolation inside `env_file` — you need the `environment` section.
+
+### Dependencies
+
+Add to `pyproject.toml`:
+```toml
+dependencies = [
+    "fastmcp>=3.0.0",
+    "httpx>=0.28.0",
+]
+```
+
+---
+
+## File Summary Template
+
+| File | Purpose |
+|------|---------|
+| `backend/src/myapp/mcp/__init__.py` | FastMCP singleton + tool import side-effects |
+| `backend/src/myapp/mcp/tools.py` | MCP tool definitions wrapping domain logic |
+| `backend/src/myapp/chat/llm.py` | httpx LLM client with connection pooling + streaming |
+| `backend/src/myapp/models/chat.py` | Pydantic request models (ViewContext, ChatStreamRequest) |
+| `backend/src/myapp/routers/chat.py` | SSE streaming endpoint + context builder |
+| `backend/src/myapp/main.py` | Lifespan + MCP mount + router registration |
+| `frontend/src/lib/chat-api.ts` | SSE async generator client |
+| `frontend/src/lib/chat-store.ts` | Zustand store with localStorage persistence |
+| `frontend/src/components/chat/ChatWidget.tsx` | React floating chat panel (SpiceBook) |
+| `frontend/src/components/chat-widget.ts` | Vanilla TS chat widget (Hamilton) |
+| `docker-compose.yml` | Caddy labels for MCP + SSE routing |
+| `.env` | GPU gateway config |
+
+---
+
+## Verification Commands
+
+```bash
+# 1. MCP protocol test
+curl -X POST http://localhost:8099/mcp \
+  -H 'Content-Type: application/json'
+
+# 2. Chat SSE test
+curl -N -X POST http://localhost:8099/api/chat/stream \
+  -H 'Content-Type: application/json' \
+  -d '{"question":"Hello, what can you help with?"}'
+
+# 3. Register MCP server with Claude Code
+claude mcp add myapp-local -- \
+  uv run --directory /path/to/backend myapp
+
+# 4. Test MCP tools via Claude Code
+claude -p "List all items" \
+  --mcp-config .mcp.json \
+  --allowedTools "mcp__myapp-local__*"
+```