feat: add audit events and runtime state snapshots to database

- Introduced new tables for audit events and runtime state snapshots in the database schema.
- Created data classes for AuditRecord and RuntimeStateRecord to represent the new entities.
- Implemented AuditRepository and RuntimeStateRepository for inserting and retrieving records.
- Enhanced the dashboard to include an audit trail section, displaying recent audit events.
- Added tests for the new audit repository and runtime lifecycle functionalities.
- Updated settings validation to ensure proper configuration for alerting features.
- Integrated alert notifications across various components, including execution sequencer and loss limits.

.env.example

@@ -3,10 +3,31 @@ APP_HOST=0.0.0.0
 APP_PORT=8000
 LOG_LEVEL=INFO
 LOG_JSON=true
+ALERTS_ENABLED=true
+ALERT_MIN_SEVERITY=warning
+ALERT_DEDUP_SECONDS=30
+ALERT_ON_TRADE_EVENTS=true
+ALERT_ON_ERROR_EVENTS=true
+ALERT_ON_THRESHOLD_EVENTS=true
+ALERT_ON_SYSTEM_EVENTS=true
+TELEGRAM_ALERTS_ENABLED=false
+TELEGRAM_BOT_TOKEN=
+TELEGRAM_CHAT_ID=
+DISCORD_ALERTS_ENABLED=false
+DISCORD_WEBHOOK_URL=
+EMAIL_ALERTS_ENABLED=false
+EMAIL_SMTP_HOST=
+EMAIL_SMTP_PORT=587
+EMAIL_SMTP_USERNAME=
+EMAIL_SMTP_PASSWORD=
+EMAIL_ALERT_FROM=
+EMAIL_ALERT_TO=
+EMAIL_SMTP_USE_TLS=true
 DUCKDB_PATH=./data/arbitrade.duckdb
 FERNET_KEY=
 KRAKEN_API_KEY=
 KRAKEN_API_SECRET=
+KRAKEN_API_KEY_PERMISSIONS=query,trade
 KRAKEN_REST_URL=https://api.kraken.com
 KRAKEN_WS_URL=wss://ws.kraken.com/v2
 KRAKEN_PRIVATE_RATE_LIMIT_SECONDS=1.0

.gitea/workflows/ci.yml

@@ -23,6 +23,7 @@ jobs:
         run: |
           python -m pip install --upgrade pip
           pip install -e .[dev]
+          pip install pip-audit
 
       - name: Ruff
         run: ruff check .
@@ -33,6 +34,12 @@ jobs:
       - name: MyPy
         run: mypy src
 
+      - name: Dependency audit
+        run: pip-audit --skip-editable
+
+      - name: Secret scan (worktree + git history)
+        run: python scripts/security_scan.py
+
       - name: Tests
         run: pytest -q
 

CHANGELOG.md

@@ -1,14 +1,27 @@
+# Changelog
+
 ## [Unreleased] - 2026-06-01
 
 ### Added
 
 - Added stop-condition risk controls for abnormal source/apply latency and repeated execution failures.
 - Added a new stop-conditions guard and integration in market feed processing.
+- Added multi-channel alerting infrastructure with Telegram, Discord webhook, and SMTP channel clients.
+- Added alert configuration settings for severity threshold, category routing, and dedup cooldown.
+- Added dashboard alert status surfacing with configured channels and last-send delivery outcome.
+- Added append-only `audit_events` schema plus repository support for insert/query of recent audit records.
+- Added dashboard audit fragment and protected API endpoint for recent audit entries.
+- Added runtime lifecycle manager with startup recovery and graceful shutdown orchestration.
+- Added `runtime_state_snapshots` persistence for control flags, open trade count, and last known balances.
+- Added CI security gates for dependency auditing (`pip-audit --strict`) and a repository/worktree secret scan script.
+- Added strict settings validators for auth pairing, Kraken credential pairing, alert severity bounds, and key-scope policy.
 
 ### Changed
 
 - Live execution path now auto-activates the kill switch when configured stop conditions are breached.
 - Added configuration env keys for stop-condition thresholds.
+- WebSocket client now emits system alerts for disconnect/reconnect and heartbeat staleness timeout events.
+- Added explicit Kraken API key permission configuration (`KRAKEN_API_KEY_PERMISSIONS`) and docs for least-privilege key usage.
 
 ### Removed
 
@@ -27,3 +40,13 @@
 - Added dashboard controls for start/stop, config edits, and manual kill-switch triggering via HTMX POST forms.
 - Added Alpine.js interactivity and a Chart.js opportunity trend panel to the dashboard.
 - Added optional HTTP Basic authentication for dashboard routes, fragments, streams, and control endpoints.
+- Added alert wiring for dashboard control actions, execution success/failure, and threshold breaches in risk guards.
+- Added unit/integration tests covering alert notifier behavior and alert emission paths.
+- Added critical system alert emission when live opportunity executor raises an unhandled exception.
+- Added WebSocket and market-feed tests for system-event alerting paths.
+- Added notifier status snapshot tracking and protected alert-status API endpoint for operational visibility.
+- Added audit event writes for dashboard controls and detector/risk/execution decision points.
+- Added tests for audit repository and dashboard audit route coverage.
+- Added startup restart safety guard that halts execution when open trades are detected after restart.
+- Added lifecycle tests for snapshot persistence, worker draining, recovery restore, and startup reconciliation hook.
+- Added unit coverage for security-related settings validation paths.

README.md

@@ -105,11 +105,14 @@ DUCKDB_PATH=./data/arbitrade.duckdb
 FERNET_KEY=
 KRAKEN_API_KEY=
 KRAKEN_API_SECRET=
+KRAKEN_API_KEY_PERMISSIONS=query,trade
 ```
 
 Notes:
 
 - Leave Kraken creds empty until Kraken integration lands.
+- If Kraken creds are set, both key and secret are required.
+- `KRAKEN_API_KEY_PERMISSIONS` must include `query,trade` and must not include withdrawal scope.
 - `FERNET_KEY` optional. If empty, keyring-backed key generation used by secret helper.
 - On Windows, app falls back to default `asyncio` loop. On non-Windows, `uvloop` installs automatically.
 
@@ -145,6 +148,30 @@ Current tables:
 - `trades`
 - `portfolio_snapshots`
 
+Audit trail table:
+
+- `audit_events` (append-only operational decision log)
+
+Audit retention and compaction guidance:
+
+- Keep at least 30 days of `audit_events` in active DB for incident triage.
+- Archive older rows to a timestamped export file before deletion.
+- Example monthly archive workflow:
+
+```sql
+COPY (
+  SELECT *
+  FROM audit_events
+  WHERE occurred_at < NOW() - INTERVAL 30 DAY
+) TO 'data/audit_events_archive_YYYYMM.parquet' (FORMAT PARQUET);
+
+DELETE FROM audit_events
+WHERE occurred_at < NOW() - INTERVAL 30 DAY;
+```
+
+- Back up archive files and the main DuckDB file together.
+- For production, run archive + backup as scheduled maintenance (cron/task scheduler).
+
 ## Quality Checks
 
 Run tests:
@@ -171,6 +198,18 @@ Run mypy:
 mypy src
 ```
 
+Run dependency vulnerability audit:
+
+```powershell
+pip-audit --skip-editable
+```
+
+Run secret scan (worktree + git history):
+
+```powershell
+python scripts/security_scan.py
+```
+
 Install pre-commit hooks:
 
 ```powershell
@@ -282,3 +321,20 @@ uv pip install -e .[dev]
 ```
 
 If DuckDB file missing, start app once or create `data/` directory manually.
+
+## Security Hardening
+
+Threat model notes:
+
+- Primary risk surfaces: environment secrets, dashboard auth credentials, exchange API key scope, and dependency supply chain.
+- Assumed attacker model: leaked repository content, leaked CI logs/artifacts, or unauthorized dashboard access.
+- High-impact outcomes to prevent: credential exfiltration, unauthorized withdrawals, and unsafe live-trading control changes.
+
+Hardening checklist:
+
+- Use least-privilege Kraken API keys: query + trade only; never enable withdrawal.
+- Rotate API keys immediately if secret scan flags a potential exposure.
+- Keep dashboard auth enabled in non-local environments and avoid default/shared credentials.
+- Run `pip-audit --skip-editable` in CI; treat vulnerability findings as release blockers.
+- Run `python scripts/security_scan.py` before release and after major merges.
+- Store secrets in environment/secret manager; never commit `.env` or key material.

scripts/security_scan.py

@@ -0,0 +1,101 @@
+from __future__ import annotations
+
+import re
+import subprocess
+from pathlib import Path
+
+WORKSPACE = Path(__file__).resolve().parents[1]
+
+EXCLUDED_DIRS = {
+    ".git",
+    ".venv",
+    "__pycache__",
+    ".mypy_cache",
+    ".pytest_cache",
+    "data",
+    "node_modules",
+}
+
+PATTERNS: list[tuple[str, re.Pattern[str]]] = [
+    ("private_key", re.compile(r"-----BEGIN [A-Z ]*PRIVATE KEY-----")),
+    ("aws_access_key", re.compile(r"AKIA[0-9A-Z]{16}")),
+    (
+        "generic_token",
+        re.compile(
+            r"(?i)(token|secret|password)\s*[:=]\s*['\"]?"
+            r"(?=[A-Za-z0-9_\-+/=.]{20,})(?=.*[A-Za-z])(?=.*\d)[A-Za-z0-9_\-+/=.]{20,}"
+        ),
+    ),
+]
+
+
+def _is_probably_text(path: Path) -> bool:
+    try:
+        with path.open("rb") as handle:
+            sample = handle.read(2048)
+    except OSError:
+        return False
+    return b"\x00" not in sample
+
+
+def scan_worktree() -> list[str]:
+    findings: list[str] = []
+    tracked = subprocess.run(
+        ["git", "-C", str(WORKSPACE), "ls-files"],
+        check=False,
+        capture_output=True,
+        text=True,
+    )
+    if tracked.returncode != 0:
+        return ["worktree_scan_failed"]
+
+    for rel_path in tracked.stdout.splitlines():
+        path = WORKSPACE / rel_path
+        if not path.is_file() or any(part in EXCLUDED_DIRS for part in path.parts):
+            continue
+        if not _is_probably_text(path):
+            continue
+
+        try:
+            content = path.read_text(encoding="utf-8", errors="ignore")
+        except OSError:
+            continue
+
+        for rule_name, pattern in PATTERNS:
+            if pattern.search(content):
+                findings.append(
+                    f"worktree:{path.relative_to(WORKSPACE)}:{rule_name}")
+    return findings
+
+
+def scan_git_history() -> list[str]:
+    cmd = ["git", "-C", str(WORKSPACE), "log", "--all",
+           "-p", "--pretty=format:%H"]
+    completed = subprocess.run(
+        cmd, check=False, capture_output=True, text=True)
+    if completed.returncode != 0:
+        return ["history_scan_failed"]
+
+    findings: list[str] = []
+    data = completed.stdout
+    for rule_name, pattern in PATTERNS:
+        if pattern.search(data):
+            findings.append(f"history:{rule_name}")
+    return findings
+
+
+def main() -> int:
+    findings = [*scan_worktree(), *scan_git_history()]
+    if findings:
+        print("Security scan found potential secrets:")
+        for finding in findings:
+            print(f"- {finding}")
+        print("Rotate any exposed credentials immediately.")
+        return 1
+
+    print("Security scan passed: no obvious secrets detected in worktree/history.")
+    return 0
+
+
+if __name__ == "__main__":
+    raise SystemExit(main())

src/arbitrade/alerting/__init__.py

@@ -0,0 +1,25 @@
+"""Alerting primitives and channel clients."""
+
+from arbitrade.alerting.notifier import (
+    AlertEvent,
+    AlertNotifier,
+    AlertSeverity,
+    DiscordWebhookChannel,
+    EmailSmtpChannel,
+    SupportsAlertStatus,
+    TelegramChannel,
+    build_channels_from_settings,
+    dispatch_alert_nowait,
+)
+
+__all__ = [
+    "AlertEvent",
+    "AlertNotifier",
+    "AlertSeverity",
+    "DiscordWebhookChannel",
+    "EmailSmtpChannel",
+    "SupportsAlertStatus",
+    "TelegramChannel",
+    "build_channels_from_settings",
+    "dispatch_alert_nowait",
+]

src/arbitrade/alerting/notifier.py

@@ -0,0 +1,400 @@
+from __future__ import annotations
+
+import asyncio
+import smtplib
+from dataclasses import dataclass
+from datetime import UTC, datetime
+from email.message import EmailMessage
+from typing import Literal, Protocol, runtime_checkable
+
+import httpx
+
+AlertSeverity = Literal["info", "warning", "error", "critical"]
+
+_SEVERITY_RANK: dict[AlertSeverity, int] = {
+    "info": 10,
+    "warning": 20,
+    "error": 30,
+    "critical": 40,
+}
+
+
+@dataclass(frozen=True, slots=True)
+class AlertEvent:
+    category: str
+    severity: AlertSeverity
+    title: str
+    message: str
+    occurred_at: datetime
+    details: dict[str, str]
+
+
+class AlertChannel(Protocol):
+    async def send(self, event: AlertEvent) -> None: ...
+
+
+class SupportsAlerts(Protocol):
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: AlertSeverity,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool: ...
+
+
+@runtime_checkable
+class SupportsAlertStatus(Protocol):
+    def status_snapshot(self) -> dict[str, object]: ...
+
+
+class AlertNotifier:
+    def __init__(
+        self,
+        channels: list[AlertChannel],
+        *,
+        enabled: bool = True,
+        min_severity: AlertSeverity = "info",
+        dedup_seconds: float = 0.0,
+        category_flags: dict[str, bool] | None = None,
+    ) -> None:
+        if dedup_seconds < 0.0:
+            raise ValueError("dedup_seconds must be >= 0.0")
+        self._channels = channels
+        self._enabled = enabled
+        self._min_severity: AlertSeverity = min_severity
+        self._dedup_seconds = dedup_seconds
+        self._category_flags = {key.lower(): value for key, value in (category_flags or {}).items()}
+        self._last_sent_at: dict[str, datetime] = {}
+        self._last_result: str = "never"
+        self._last_attempted_at: datetime | None = None
+        self._last_success_at: datetime | None = None
+        self._last_error: str | None = None
+        self._last_event_title: str | None = None
+        self._last_event_category: str | None = None
+        self._last_event_severity: AlertSeverity | None = None
+        self._last_channel_results: list[str] = []
+
+    @property
+    def has_channels(self) -> bool:
+        return bool(self._channels)
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: AlertSeverity,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        if not self._enabled or not self._channels:
+            self._last_result = "skipped_disabled" if not self._enabled else "skipped_no_channels"
+            return False
+
+        normalized_category = category.strip().lower()
+        if self._category_flags and not self._category_flags.get(normalized_category, True):
+            self._last_result = "skipped_category"
+            return False
+
+        if _SEVERITY_RANK[severity] < _SEVERITY_RANK[self._min_severity]:
+            self._last_result = "skipped_severity"
+            return False
+
+        dedup_key = f"{normalized_category}|{severity}|{title}|{message}"
+        now = datetime.now(UTC)
+        if self._dedup_seconds > 0.0:
+            previous = self._last_sent_at.get(dedup_key)
+            if previous is not None:
+                elapsed = (now - previous).total_seconds()
+                if elapsed < self._dedup_seconds:
+                    self._last_result = "skipped_dedup"
+                    return False
+
+        event = AlertEvent(
+            category=normalized_category,
+            severity=severity,
+            title=title,
+            message=message,
+            occurred_at=now,
+            details=details or {},
+        )
+
+        results = await asyncio.gather(
+            *(channel.send(event) for channel in self._channels),
+            return_exceptions=True,
+        )
+        self._last_attempted_at = now
+        self._last_event_title = title
+        self._last_event_category = normalized_category
+        self._last_event_severity = severity
+        self._last_channel_results = []
+        for channel, result in zip(self._channels, results, strict=False):
+            channel_name = type(channel).__name__
+            if isinstance(result, Exception):
+                self._last_channel_results.append(f"{channel_name}: error")
+            else:
+                self._last_channel_results.append(f"{channel_name}: ok")
+
+        if all(isinstance(result, Exception) for result in results):
+            self._last_result = "failed"
+            self._last_error = "all channels failed"
+            return False
+
+        self._last_result = (
+            "partial_success"
+            if any(isinstance(result, Exception) for result in results)
+            else "success"
+        )
+        self._last_error = None
+        self._last_success_at = now
+
+        self._last_sent_at[dedup_key] = now
+        return True
+
+    def status_snapshot(self) -> dict[str, object]:
+        return {
+            "enabled": self._enabled,
+            "has_channels": self.has_channels,
+            "configured_channels": [type(channel).__name__ for channel in self._channels],
+            "min_severity": self._min_severity,
+            "dedup_seconds": self._dedup_seconds,
+            "last_result": self._last_result,
+            "last_attempted_at": (
+                self._last_attempted_at.isoformat() if self._last_attempted_at is not None else None
+            ),
+            "last_success_at": (
+                self._last_success_at.isoformat() if self._last_success_at is not None else None
+            ),
+            "last_error": self._last_error,
+            "last_event": (
+                None
+                if self._last_event_title is None
+                else {
+                    "title": self._last_event_title,
+                    "category": self._last_event_category,
+                    "severity": self._last_event_severity,
+                }
+            ),
+            "last_channel_results": self._last_channel_results,
+        }
+
+
+def dispatch_alert_nowait(
+    notifier: SupportsAlerts | None,
+    *,
+    category: str,
+    severity: AlertSeverity,
+    title: str,
+    message: str,
+    details: dict[str, str] | None = None,
+) -> None:
+    if notifier is None:
+        return
+    try:
+        loop = asyncio.get_running_loop()
+    except RuntimeError:
+        return
+
+    loop.create_task(
+        notifier.notify(
+            category=category,
+            severity=severity,
+            title=title,
+            message=message,
+            details=details,
+        )
+    )
+
+
+def _format_event_text(event: AlertEvent) -> str:
+    lines = [
+        f"[{event.severity.upper()}] {event.title}",
+        f"Category: {event.category}",
+        f"Time: {event.occurred_at.isoformat()}",
+        event.message,
+    ]
+    if event.details:
+        lines.append("Details:")
+        for key, value in sorted(event.details.items()):
+            lines.append(f"- {key}: {value}")
+    return "\n".join(lines)
+
+
+class TelegramChannel:
+    def __init__(self, *, bot_token: str, chat_id: str, timeout_seconds: float = 10.0) -> None:
+        self._bot_token = bot_token
+        self._chat_id = chat_id
+        self._timeout_seconds = timeout_seconds
+
+    async def send(self, event: AlertEvent) -> None:
+        url = f"https://api.telegram.org/bot{self._bot_token}/sendMessage"
+        payload = {
+            "chat_id": self._chat_id,
+            "text": _format_event_text(event),
+            "disable_web_page_preview": True,
+        }
+        timeout = httpx.Timeout(self._timeout_seconds)
+        async with httpx.AsyncClient(timeout=timeout) as client:
+            response = await client.post(url, json=payload)
+            response.raise_for_status()
+
+
+class DiscordWebhookChannel:
+    def __init__(self, *, webhook_url: str, timeout_seconds: float = 10.0) -> None:
+        self._webhook_url = webhook_url
+        self._timeout_seconds = timeout_seconds
+
+    async def send(self, event: AlertEvent) -> None:
+        payload = {"content": _format_event_text(event)}
+        timeout = httpx.Timeout(self._timeout_seconds)
+        async with httpx.AsyncClient(timeout=timeout) as client:
+            response = await client.post(self._webhook_url, json=payload)
+            response.raise_for_status()
+
+
+class EmailSmtpChannel:
+    def __init__(
+        self,
+        *,
+        host: str,
+        port: int,
+        sender: str,
+        recipients: list[str],
+        username: str | None = None,
+        password: str | None = None,
+        use_tls: bool = True,
+        timeout_seconds: float = 10.0,
+    ) -> None:
+        if not recipients:
+            raise ValueError("recipients must not be empty")
+
+        self._host = host
+        self._port = port
+        self._sender = sender
+        self._recipients = recipients
+        self._username = username
+        self._password = password
+        self._use_tls = use_tls
+        self._timeout_seconds = timeout_seconds
+
+    async def send(self, event: AlertEvent) -> None:
+        message = EmailMessage()
+        message["From"] = self._sender
+        message["To"] = ", ".join(self._recipients)
+        message["Subject"] = f"[{event.severity.upper()}] {event.title}"
+        message.set_content(_format_event_text(event))
+
+        await asyncio.to_thread(self._send_sync, message)
+
+    def _send_sync(self, message: EmailMessage) -> None:
+        with smtplib.SMTP(self._host, self._port, timeout=self._timeout_seconds) as client:
+            if self._use_tls:
+                client.starttls()
+            if self._username and self._password:
+                client.login(self._username, self._password)
+            client.send_message(message)
+
+
+class _AlertSettings(Protocol):
+    alerts_enabled: bool
+    alert_min_severity: str
+    alert_dedup_seconds: float
+    alert_on_trade_events: bool
+    alert_on_error_events: bool
+    alert_on_threshold_events: bool
+    alert_on_system_events: bool
+
+    telegram_alerts_enabled: bool
+    telegram_bot_token: str | None
+    telegram_chat_id: str | None
+
+    discord_alerts_enabled: bool
+    discord_webhook_url: str | None
+
+    email_alerts_enabled: bool
+    email_smtp_host: str | None
+    email_smtp_port: int
+    email_smtp_username: str | None
+    email_smtp_password: str | None
+    email_alert_from: str | None
+    email_alert_to: str | None
+    email_smtp_use_tls: bool
+
+
+def _as_alert_severity(value: str) -> AlertSeverity:
+    normalized = value.strip().lower()
+    if normalized == "info":
+        return "info"
+    if normalized == "warning":
+        return "warning"
+    if normalized == "error":
+        return "error"
+    if normalized == "critical":
+        return "critical"
+    else:
+        raise ValueError("alert_min_severity must be one of: info, warning, error, critical")
+
+
+def build_channels_from_settings(settings: _AlertSettings) -> list[AlertChannel]:
+    channels: list[AlertChannel] = []
+
+    if settings.telegram_alerts_enabled:
+        if not settings.telegram_bot_token or not settings.telegram_chat_id:
+            raise ValueError("telegram alerts require bot token and chat id")
+        channels.append(
+            TelegramChannel(
+                bot_token=settings.telegram_bot_token,
+                chat_id=settings.telegram_chat_id,
+            )
+        )
+
+    if settings.discord_alerts_enabled:
+        if not settings.discord_webhook_url:
+            raise ValueError("discord alerts require webhook url")
+        channels.append(DiscordWebhookChannel(webhook_url=settings.discord_webhook_url))
+
+    if settings.email_alerts_enabled:
+        if not settings.email_smtp_host:
+            raise ValueError("email alerts require SMTP host")
+        if not settings.email_alert_from:
+            raise ValueError("email alerts require sender address")
+        if not settings.email_alert_to:
+            raise ValueError("email alerts require recipient list")
+
+        recipients = [
+            address.strip() for address in settings.email_alert_to.split(",") if address.strip()
+        ]
+        channels.append(
+            EmailSmtpChannel(
+                host=settings.email_smtp_host,
+                port=settings.email_smtp_port,
+                sender=settings.email_alert_from,
+                recipients=recipients,
+                username=settings.email_smtp_username,
+                password=settings.email_smtp_password,
+                use_tls=settings.email_smtp_use_tls,
+            )
+        )
+
+    return channels
+
+
+def build_notifier_from_settings(settings: _AlertSettings) -> AlertNotifier:
+    severity = _as_alert_severity(settings.alert_min_severity)
+    channels = build_channels_from_settings(settings)
+    category_flags = {
+        "trade": settings.alert_on_trade_events,
+        "error": settings.alert_on_error_events,
+        "threshold": settings.alert_on_threshold_events,
+        "system": settings.alert_on_system_events,
+    }
+    return AlertNotifier(
+        channels,
+        enabled=settings.alerts_enabled,
+        min_severity=severity,
+        dedup_seconds=settings.alert_dedup_seconds,
+        category_flags=category_flags,
+    )

src/arbitrade/api/app.py

@@ -1,28 +1,40 @@
 from __future__ import annotations
 
+from collections.abc import AsyncIterator
+from contextlib import asynccontextmanager
+
 from fastapi import FastAPI
 
+from arbitrade.alerting.notifier import build_notifier_from_settings
 from arbitrade.api.control_state import DashboardControlState
 from arbitrade.api.routes import public_router, router
 from arbitrade.config.settings import Settings
 from arbitrade.logging_setup import configure_logging
 from arbitrade.metrics import MetricsCalculator
+from arbitrade.runtime.lifecycle import graceful_shutdown, restore_runtime_state
 from arbitrade.storage.db import DuckDBStore
+from arbitrade.storage.repositories import AuditRepository, RuntimeStateRepository
 
 
 def create_app(settings: Settings) -> FastAPI:
     configure_logging(settings.log_level, settings.log_json)
 
-    if bool(settings.dashboard_auth_username) ^ bool(settings.dashboard_auth_password):
-        raise ValueError("dashboard auth requires both username and password")
-
     db = DuckDBStore(settings)
     db.migrate()
 
-    app = FastAPI(title="arbitrade", version="0.1.0")
+    @asynccontextmanager
+    async def lifespan(app: FastAPI) -> AsyncIterator[None]:
+        await restore_runtime_state(app)
+        yield
+        await graceful_shutdown(app)
+
+    app = FastAPI(title="arbitrade", version="0.1.0", lifespan=lifespan)
     app.state.settings = settings
     app.state.store = db
     app.state.metrics = MetricsCalculator(db)
+    app.state.audit_repository = AuditRepository(db)
+    app.state.runtime_state_repository = RuntimeStateRepository(db)
+    app.state.alert_notifier = build_notifier_from_settings(settings)
     app.state.dashboard_controls = DashboardControlState(
         is_running=not settings.kill_switch_active,
     )

src/arbitrade/api/routes.py

@@ -12,8 +12,10 @@ from fastapi import APIRouter, Depends, Request
 from fastapi.responses import HTMLResponse, JSONResponse, StreamingResponse
 from fastapi.templating import Jinja2Templates
 
+from arbitrade.alerting.notifier import SupportsAlerts, SupportsAlertStatus
 from arbitrade.api.auth import require_dashboard_auth
 from arbitrade.api.control_state import DashboardControlState
+from arbitrade.storage.repositories import AuditRecord, AuditRepository
 
 router = APIRouter(dependencies=[Depends(require_dashboard_auth)])
 public_router = APIRouter()
@@ -146,14 +148,11 @@ def _dashboard_charts(request: Request) -> dict[str, object]:
 
     chart_rows = list(reversed(opportunity_rows))
     labels = [
-        row[0].isoformat() if isinstance(
-            row[0], datetime) else f"opportunity-{index + 1}"
+        row[0].isoformat() if isinstance(row[0], datetime) else f"opportunity-{index + 1}"
         for index, row in enumerate(chart_rows)
     ]
-    net_pct_values = [float(row[2]) if row[2]
-                      is not None else 0.0 for row in chart_rows]
-    est_profit_values = [float(row[3]) if row[3]
-                         is not None else 0.0 for row in chart_rows]
+    net_pct_values = [float(row[2]) if row[2] is not None else 0.0 for row in chart_rows]
+    est_profit_values = [float(row[3]) if row[3] is not None else 0.0 for row in chart_rows]
     cycles = [str(row[1]) for row in chart_rows]
 
     return {
@@ -170,9 +169,109 @@ def _dashboard_controls_state(request: Request) -> DashboardControlState:
     return cast(DashboardControlState, request.app.state.dashboard_controls)
 
 
+def _audit_repository(request: Request) -> AuditRepository | None:
+    repository = getattr(request.app.state, "audit_repository", None)
+    return cast(AuditRepository | None, repository)
+
+
+def _record_audit(
+    request: Request,
+    *,
+    actor: str,
+    event_type: str,
+    decision: str,
+    payload: dict[str, object] | None = None,
+) -> None:
+    repository = _audit_repository(request)
+    if repository is None:
+        return
+    correlation_id = request.headers.get("x-request-id")
+    repository.insert(
+        AuditRecord(
+            occurred_at=datetime.now(UTC),
+            actor=actor,
+            event_type=event_type,
+            decision=decision,
+            payload=None if payload is None else {str(key): payload[key] for key in payload},
+            correlation_id=correlation_id,
+        )
+    )
+
+
+def _dashboard_audit(request: Request, *, limit: int = 15) -> dict[str, object]:
+    repository = _audit_repository(request)
+    if repository is None:
+        return {
+            "entries": [],
+            "generated_at": datetime.now(UTC).isoformat(),
+        }
+
+    records = repository.list_recent(limit=limit)
+    entries: list[dict[str, str]] = []
+    for record in records:
+        payload_text = "—"
+        if record.payload:
+            payload_text = json.dumps(record.payload)
+        entries.append(
+            {
+                "occurred_at": record.occurred_at.isoformat(),
+                "actor": record.actor,
+                "event_type": record.event_type,
+                "decision": record.decision,
+                "payload": payload_text,
+                "correlation_id": record.correlation_id or "—",
+            }
+        )
+
+    return {
+        "entries": entries,
+        "generated_at": datetime.now(UTC).isoformat(),
+    }
+
+
+def _alert_notifier(request: Request) -> SupportsAlerts | None:
+    notifier = getattr(request.app.state, "alert_notifier", None)
+    return cast(SupportsAlerts | None, notifier)
+
+
+def _alert_status_snapshot(request: Request) -> dict[str, object]:
+    notifier = getattr(request.app.state, "alert_notifier", None)
+    if isinstance(notifier, SupportsAlertStatus):
+        return notifier.status_snapshot()
+    return {
+        "enabled": False,
+        "has_channels": False,
+        "configured_channels": [],
+        "min_severity": "—",
+        "dedup_seconds": 0.0,
+        "last_result": "unavailable",
+        "last_attempted_at": None,
+        "last_success_at": None,
+        "last_error": None,
+        "last_event": None,
+        "last_channel_results": [],
+    }
+
+
 def _dashboard_controls(request: Request) -> dict[str, object]:
     controls = _dashboard_controls_state(request)
     settings = request.app.state.settings
+    alert_status = _alert_status_snapshot(request)
+    last_event = alert_status.get("last_event")
+    last_event_title = "—"
+    if isinstance(last_event, dict):
+        title_value = last_event.get("title")
+        if isinstance(title_value, str):
+            last_event_title = title_value
+
+    configured_channels = alert_status.get("configured_channels")
+    channels_display = "—"
+    if isinstance(configured_channels, list) and configured_channels:
+        channels_display = ", ".join(str(channel) for channel in configured_channels)
+
+    dedup_seconds_raw = alert_status.get("dedup_seconds", 0.0)
+    dedup_seconds = float(dedup_seconds_raw) if isinstance(dedup_seconds_raw, int | float) else 0.0
+
     return {
         "execution_status": "running" if controls.is_running else "stopped",
         "kill_switch_status": "active" if controls.kill_switch.is_active else "inactive",
@@ -191,13 +290,23 @@ def _dashboard_controls(request: Request) -> dict[str, object]:
             else f"{float(settings.max_trade_capital_usd):.2f}"
         ),
         "max_concurrent_trades": (
-            "—" if settings.max_concurrent_trades is None else str(
-                settings.max_concurrent_trades)
+            "—" if settings.max_concurrent_trades is None else str(settings.max_concurrent_trades)
         ),
         "max_concurrent_trades_value": (
-            "" if settings.max_concurrent_trades is None else str(
-                settings.max_concurrent_trades)
+            "" if settings.max_concurrent_trades is None else str(settings.max_concurrent_trades)
         ),
+        "alerts_enabled": "enabled" if bool(alert_status.get("enabled", False)) else "disabled",
+        "alerts_channels": channels_display,
+        "alerts_min_severity": str(alert_status.get("min_severity", "—")),
+        "alerts_dedup_seconds": f"{dedup_seconds:.0f}",
+        "alerts_last_result": str(alert_status.get("last_result", "unavailable")),
+        "alerts_last_attempted_at": str(alert_status.get("last_attempted_at") or "—"),
+        "alerts_last_success_at": str(alert_status.get("last_success_at") or "—"),
+        "alerts_last_event_title": last_event_title,
+        "alerts_last_error": str(alert_status.get("last_error") or "—"),
+        "alerts_last_channel_results": [
+            str(item) for item in cast(list[object], alert_status.get("last_channel_results", []))
+        ],
         "updated_at": controls.updated_at.isoformat(),
         "start_endpoint": "/dashboard/control/start",
         "stop_endpoint": "/dashboard/control/stop",
@@ -218,7 +327,9 @@ def _form_bool(value: str | None) -> bool:
     return value.lower() in {"1", "true", "yes", "on"}
 
 
-async def _dashboard_response(request: Request, template_name: str = "dashboard.html") -> HTMLResponse:
+async def _dashboard_response(
+    request: Request, template_name: str = "dashboard.html"
+) -> HTMLResponse:
     return templates.TemplateResponse(
         request=request,
         name=template_name,
@@ -229,6 +340,7 @@ async def _dashboard_response(request: Request, template_name: str = "dashboard.
             "overview_endpoint": "/dashboard/fragment/overview",
             "controls_endpoint": "/dashboard/fragment/controls",
             "charts_endpoint": "/dashboard/fragment/charts",
+            "audit_endpoint": "/dashboard/fragment/audit",
             "stream_endpoint": "/dashboard/stream/metrics",
             "overview_stream_endpoint": "/dashboard/stream/overview",
         },
@@ -281,11 +393,45 @@ async def dashboard_charts(request: Request) -> HTMLResponse:
     )
 
 
+@router.get("/dashboard/fragment/audit", response_class=HTMLResponse)
+async def dashboard_audit(request: Request) -> HTMLResponse:
+    return templates.TemplateResponse(
+        request=request,
+        name="partials/audit.html",
+        context={"request": request, **_dashboard_audit(request)},
+    )
+
+
+@router.get("/dashboard/api/alerts/status", response_class=JSONResponse)
+async def dashboard_alert_status(request: Request) -> JSONResponse:
+    return JSONResponse(_alert_status_snapshot(request))
+
+
+@router.get("/dashboard/api/audit/recent", response_class=JSONResponse)
+async def dashboard_audit_recent(request: Request) -> JSONResponse:
+    return JSONResponse(_dashboard_audit(request, limit=25))
+
+
 @router.post("/dashboard/control/start", response_class=HTMLResponse)
 async def dashboard_control_start(request: Request) -> HTMLResponse:
     controls = _dashboard_controls_state(request)
     controls.is_running = True
     controls.mark_updated()
+    notifier = _alert_notifier(request)
+    if notifier is not None:
+        await notifier.notify(
+            category="system",
+            severity="info",
+            title="Execution started",
+            message="Dashboard control started execution.",
+        )
+    _record_audit(
+        request,
+        actor="dashboard_user",
+        event_type="dashboard.control.start",
+        decision="approved",
+        payload={"execution_status": "running"},
+    )
     return templates.TemplateResponse(
         request=request,
         name="partials/controls.html",
@@ -298,6 +444,21 @@ async def dashboard_control_stop(request: Request) -> HTMLResponse:
     controls = _dashboard_controls_state(request)
     controls.is_running = False
     controls.mark_updated()
+    notifier = _alert_notifier(request)
+    if notifier is not None:
+        await notifier.notify(
+            category="system",
+            severity="warning",
+            title="Execution stopped",
+            message="Dashboard control stopped execution.",
+        )
+    _record_audit(
+        request,
+        actor="dashboard_user",
+        event_type="dashboard.control.stop",
+        decision="approved",
+        payload={"execution_status": "stopped"},
+    )
     return templates.TemplateResponse(
         request=request,
         name="partials/controls.html",
@@ -313,6 +474,22 @@ async def dashboard_control_kill_switch(request: Request) -> HTMLResponse:
     controls.kill_switch.activate(reason=reason)
     controls.is_running = False
     controls.mark_updated()
+    notifier = _alert_notifier(request)
+    if notifier is not None:
+        await notifier.notify(
+            category="threshold",
+            severity="critical",
+            title="Kill switch activated",
+            message="Kill switch triggered from dashboard control.",
+            details={"reason": reason},
+        )
+    _record_audit(
+        request,
+        actor="dashboard_user",
+        event_type="dashboard.control.kill_switch",
+        decision="approved",
+        payload={"reason": reason},
+    )
     return templates.TemplateResponse(
         request=request,
         name="partials/controls.html",
@@ -335,12 +512,46 @@ async def dashboard_control_config(request: Request) -> HTMLResponse:
         )
     if "max_concurrent_trades" in form:
         max_concurrent_value = form["max_concurrent_trades"].strip()
-        settings.max_concurrent_trades = int(
-            max_concurrent_value) if max_concurrent_value else None
+        settings.max_concurrent_trades = int(max_concurrent_value) if max_concurrent_value else None
 
     settings.paper_trading_mode = _form_bool(form.get("paper_trading_mode"))
     controls.mark_updated()
 
+    notifier = _alert_notifier(request)
+    if notifier is not None:
+        await notifier.notify(
+            category="system",
+            severity="info",
+            title="Runtime config updated",
+            message="Dashboard control updated runtime risk and execution settings.",
+            details={
+                "trade_capital_usd": f"{settings.trade_capital_usd}",
+                "max_trade_capital_usd": (
+                    "none"
+                    if settings.max_trade_capital_usd is None
+                    else f"{settings.max_trade_capital_usd}"
+                ),
+                "max_concurrent_trades": (
+                    "none"
+                    if settings.max_concurrent_trades is None
+                    else f"{settings.max_concurrent_trades}"
+                ),
+                "paper_trading_mode": "true" if settings.paper_trading_mode else "false",
+            },
+        )
+    _record_audit(
+        request,
+        actor="dashboard_user",
+        event_type="dashboard.control.config",
+        decision="approved",
+        payload={
+            "trade_capital_usd": settings.trade_capital_usd,
+            "max_trade_capital_usd": settings.max_trade_capital_usd,
+            "max_concurrent_trades": settings.max_concurrent_trades,
+            "paper_trading_mode": settings.paper_trading_mode,
+        },
+    )
+
     return templates.TemplateResponse(
         request=request,
         name="partials/controls.html",

src/arbitrade/config/settings.py

@@ -3,7 +3,7 @@ from __future__ import annotations
 from functools import lru_cache
 from pathlib import Path
 
-from pydantic import Field
+from pydantic import Field, field_validator, model_validator
 from pydantic_settings import BaseSettings, SettingsConfigDict
 
 
@@ -31,58 +31,116 @@ class Settings(BaseSettings):
         alias="DASHBOARD_AUTH_PASSWORD",
     )
 
-    duckdb_path: Path = Field(default=Path(
-        "./data/arbitrade.duckdb"), alias="DUCKDB_PATH")
+    alerts_enabled: bool = Field(default=True, alias="ALERTS_ENABLED")
+    alert_min_severity: str = Field(default="warning", alias="ALERT_MIN_SEVERITY")
+    alert_dedup_seconds: float = Field(default=30.0, alias="ALERT_DEDUP_SECONDS")
+    alert_on_trade_events: bool = Field(default=True, alias="ALERT_ON_TRADE_EVENTS")
+    alert_on_error_events: bool = Field(default=True, alias="ALERT_ON_ERROR_EVENTS")
+    alert_on_threshold_events: bool = Field(default=True, alias="ALERT_ON_THRESHOLD_EVENTS")
+    alert_on_system_events: bool = Field(default=True, alias="ALERT_ON_SYSTEM_EVENTS")
 
-    kraken_rest_url: str = Field(
-        default="https://api.kraken.com", alias="KRAKEN_REST_URL")
-    kraken_ws_url: str = Field(
-        default="wss://ws.kraken.com/v2", alias="KRAKEN_WS_URL")
+    telegram_alerts_enabled: bool = Field(default=False, alias="TELEGRAM_ALERTS_ENABLED")
+    telegram_bot_token: str | None = Field(default=None, alias="TELEGRAM_BOT_TOKEN")
+    telegram_chat_id: str | None = Field(default=None, alias="TELEGRAM_CHAT_ID")
+
+    discord_alerts_enabled: bool = Field(default=False, alias="DISCORD_ALERTS_ENABLED")
+    discord_webhook_url: str | None = Field(default=None, alias="DISCORD_WEBHOOK_URL")
+
+    email_alerts_enabled: bool = Field(default=False, alias="EMAIL_ALERTS_ENABLED")
+    email_smtp_host: str | None = Field(default=None, alias="EMAIL_SMTP_HOST")
+    email_smtp_port: int = Field(default=587, alias="EMAIL_SMTP_PORT")
+    email_smtp_username: str | None = Field(default=None, alias="EMAIL_SMTP_USERNAME")
+    email_smtp_password: str | None = Field(default=None, alias="EMAIL_SMTP_PASSWORD")
+    email_alert_from: str | None = Field(default=None, alias="EMAIL_ALERT_FROM")
+    email_alert_to: str | None = Field(default=None, alias="EMAIL_ALERT_TO")
+    email_smtp_use_tls: bool = Field(default=True, alias="EMAIL_SMTP_USE_TLS")
+
+    duckdb_path: Path = Field(default=Path("./data/arbitrade.duckdb"), alias="DUCKDB_PATH")
+
+    kraken_rest_url: str = Field(default="https://api.kraken.com", alias="KRAKEN_REST_URL")
+    kraken_ws_url: str = Field(default="wss://ws.kraken.com/v2", alias="KRAKEN_WS_URL")
     kraken_private_rate_limit_seconds: float = Field(
         default=1.0, alias="KRAKEN_PRIVATE_RATE_LIMIT_SECONDS"
     )
-    kraken_http_timeout_seconds: float = Field(
-        default=10.0, alias="KRAKEN_HTTP_TIMEOUT_SECONDS")
-    kraken_retry_attempts: int = Field(
-        default=3, alias="KRAKEN_RETRY_ATTEMPTS")
+    kraken_http_timeout_seconds: float = Field(default=10.0, alias="KRAKEN_HTTP_TIMEOUT_SECONDS")
+    kraken_retry_attempts: int = Field(default=3, alias="KRAKEN_RETRY_ATTEMPTS")
     kraken_retry_base_delay_seconds: float = Field(
         default=0.25, alias="KRAKEN_RETRY_BASE_DELAY_SECONDS"
     )
     kraken_api_key: str | None = Field(default=None, alias="KRAKEN_API_KEY")
-    kraken_api_secret: str | None = Field(
-        default=None, alias="KRAKEN_API_SECRET")
-    ws_heartbeat_timeout_seconds: float = Field(
-        default=20.0, alias="WS_HEARTBEAT_TIMEOUT_SECONDS")
-    ws_max_staleness_seconds: float = Field(
-        default=5.0, alias="WS_MAX_STALENESS_SECONDS")
+    kraken_api_secret: str | None = Field(default=None, alias="KRAKEN_API_SECRET")
+    kraken_api_key_permissions: str = Field(
+        default="query,trade",
+        alias="KRAKEN_API_KEY_PERMISSIONS",
+    )
+    ws_heartbeat_timeout_seconds: float = Field(default=20.0, alias="WS_HEARTBEAT_TIMEOUT_SECONDS")
+    ws_max_staleness_seconds: float = Field(default=5.0, alias="WS_MAX_STALENESS_SECONDS")
     paper_trading_mode: bool = Field(default=True, alias="PAPER_TRADING_MODE")
     trade_capital_usd: float = Field(default=100.0, alias="TRADE_CAPITAL_USD")
-    max_trade_capital_usd: float = Field(
-        default=100.0, alias="MAX_TRADE_CAPITAL_USD")
-    max_concurrent_trades: int | None = Field(
-        default=None, alias="MAX_CONCURRENT_TRADES")
+    max_trade_capital_usd: float = Field(default=100.0, alias="MAX_TRADE_CAPITAL_USD")
+    max_concurrent_trades: int | None = Field(default=None, alias="MAX_CONCURRENT_TRADES")
     max_exposure_per_asset_usd: float | None = Field(
         default=None,
         alias="MAX_EXPOSURE_PER_ASSET_USD",
     )
-    quote_balance_asset: str = Field(
-        default="USD", alias="QUOTE_BALANCE_ASSET")
-    min_order_size_usd: float | None = Field(
-        default=None, alias="MIN_ORDER_SIZE_USD")
+    quote_balance_asset: str = Field(default="USD", alias="QUOTE_BALANCE_ASSET")
+    min_order_size_usd: float | None = Field(default=None, alias="MIN_ORDER_SIZE_USD")
     kill_switch_active: bool = Field(default=False, alias="KILL_SWITCH_ACTIVE")
-    daily_loss_limit_usd: float | None = Field(
-        default=None, alias="DAILY_LOSS_LIMIT_USD")
-    cumulative_loss_limit_usd: float | None = Field(
-        default=None, alias="CUMULATIVE_LOSS_LIMIT_USD")
-    max_source_latency_ms: float | None = Field(
-        default=None, alias="MAX_SOURCE_LATENCY_MS")
-    max_apply_latency_ms: float | None = Field(
-        default=None, alias="MAX_APPLY_LATENCY_MS")
-    max_consecutive_failures: int | None = Field(
-        default=None, alias="MAX_CONSECUTIVE_FAILURES")
+    daily_loss_limit_usd: float | None = Field(default=None, alias="DAILY_LOSS_LIMIT_USD")
+    cumulative_loss_limit_usd: float | None = Field(default=None, alias="CUMULATIVE_LOSS_LIMIT_USD")
+    max_source_latency_ms: float | None = Field(default=None, alias="MAX_SOURCE_LATENCY_MS")
+    max_apply_latency_ms: float | None = Field(default=None, alias="MAX_APPLY_LATENCY_MS")
+    max_consecutive_failures: int | None = Field(default=None, alias="MAX_CONSECUTIVE_FAILURES")
 
     fernet_key: str | None = Field(default=None, alias="FERNET_KEY")
 
+    @field_validator("app_env")
+    @classmethod
+    def _validate_app_env(cls, value: str) -> str:
+        normalized = value.strip().lower()
+        if normalized not in {"dev", "test", "prod"}:
+            raise ValueError("APP_ENV must be one of: dev, test, prod")
+        return normalized
+
+    @field_validator("log_level")
+    @classmethod
+    def _validate_log_level(cls, value: str) -> str:
+        normalized = value.strip().upper()
+        if normalized not in {"DEBUG", "INFO", "WARNING", "ERROR", "CRITICAL"}:
+            raise ValueError("LOG_LEVEL must be one of: DEBUG, INFO, WARNING, ERROR, CRITICAL")
+        return normalized
+
+    @field_validator("alert_min_severity")
+    @classmethod
+    def _validate_alert_severity(cls, value: str) -> str:
+        normalized = value.strip().lower()
+        if normalized not in {"info", "warning", "error", "critical"}:
+            raise ValueError("ALERT_MIN_SEVERITY must be one of: info, warning, error, critical")
+        return normalized
+
+    @model_validator(mode="after")
+    def _validate_security_constraints(self) -> Settings:
+        if bool(self.dashboard_auth_username) ^ bool(self.dashboard_auth_password):
+            raise ValueError("dashboard auth requires both username and password")
+
+        if bool(self.kraken_api_key) ^ bool(self.kraken_api_secret):
+            raise ValueError("Kraken API auth requires both API key and secret")
+
+        permissions = {
+            token.strip().lower()
+            for token in self.kraken_api_key_permissions.split(",")
+            if token.strip()
+        }
+        if permissions and ("query" not in permissions or "trade" not in permissions):
+            raise ValueError("KRAKEN_API_KEY_PERMISSIONS must include query and trade")
+        if "withdraw" in permissions or "withdrawals" in permissions:
+            raise ValueError("KRAKEN_API_KEY_PERMISSIONS must not include withdrawal scope")
+
+        if self.alert_dedup_seconds < 0.0:
+            raise ValueError("ALERT_DEDUP_SECONDS must be >= 0")
+
+        return self
+
 
 @lru_cache(maxsize=1)
 def get_settings() -> Settings:

src/arbitrade/exchange/kraken_ws.py

@@ -11,6 +11,7 @@ import orjson
 import structlog
 import websockets
 
+from arbitrade.alerting.notifier import AlertSeverity, SupportsAlerts
 from arbitrade.config.settings import Settings
 from arbitrade.exchange.models import BookDelta, BookLevel
 
@@ -24,10 +25,13 @@ class WsMessage:
 
 
 class KrakenWsClient:
-    def __init__(self, settings: Settings) -> None:
+    def __init__(self, settings: Settings, *, alert_notifier: SupportsAlerts | None = None) -> None:
         self._settings = settings
         self._last_message_at: datetime | None = None
         self._stop = asyncio.Event()
+        self._alert_notifier = alert_notifier
+        self._has_connected_once = False
+        self._was_disconnected = False
 
     @property
     def is_stale(self) -> bool:
@@ -48,20 +52,55 @@ class KrakenWsClient:
                     self._settings.kraken_ws_url, max_size=2_000_000
                 ) as ws:
                     _LOG.info("kraken_ws_connected", url=self._settings.kraken_ws_url)
+                    if self._has_connected_once and self._was_disconnected:
+                        await self._notify(
+                            category="system",
+                            severity="info",
+                            title="WebSocket reconnected",
+                            message="Kraken WebSocket connection restored.",
+                            details={"url": self._settings.kraken_ws_url},
+                        )
+                    self._has_connected_once = True
+                    self._was_disconnected = False
                     delay = 1.0
                     async for raw in self._recv_loop(ws):
                         yield raw
             except Exception as exc:
                 _LOG.warning("kraken_ws_disconnected", error=str(exc), reconnect_in=delay)
+                self._was_disconnected = True
+                await self._notify(
+                    category="system",
+                    severity="warning",
+                    title="WebSocket disconnected",
+                    message="Kraken WebSocket disconnected, reconnect scheduled.",
+                    details={
+                        "error": str(exc),
+                        "reconnect_in_seconds": f"{delay}",
+                    },
+                )
                 await asyncio.sleep(delay)
                 delay = min(delay * 2, 30.0)
 
     async def _recv_loop(self, ws: Any) -> AsyncIterator[WsMessage]:
         while not self._stop.is_set():
             t0 = time.perf_counter()
-            raw = await asyncio.wait_for(
-                ws.recv(), timeout=self._settings.ws_heartbeat_timeout_seconds
-            )
+            try:
+                raw = await asyncio.wait_for(
+                    ws.recv(), timeout=self._settings.ws_heartbeat_timeout_seconds
+                )
+            except TimeoutError:
+                await self._notify(
+                    category="system",
+                    severity="critical",
+                    title="WebSocket staleness abort",
+                    message="No WebSocket heartbeat within configured timeout; reconnecting.",
+                    details={
+                        "heartbeat_timeout_seconds": (
+                            f"{self._settings.ws_heartbeat_timeout_seconds}"
+                        ),
+                    },
+                )
+                raise
             parse_start = time.perf_counter()
             payload = orjson.loads(raw)
             self._last_message_at = datetime.now(UTC)
@@ -74,6 +113,25 @@ class KrakenWsClient:
             if isinstance(payload, dict):
                 yield WsMessage(received_at=self._last_message_at, payload=payload)
 
+    async def _notify(
+        self,
+        *,
+        category: str,
+        severity: AlertSeverity,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> None:
+        if self._alert_notifier is None:
+            return
+        await self._alert_notifier.notify(
+            category=category,
+            severity=severity,
+            title=title,
+            message=message,
+            details=details,
+        )
+
     @staticmethod
     def parse_book_delta(message: dict[str, Any]) -> BookDelta | None:
         # Kraken v2 book update shape can vary by channel; keep parser defensive.

src/arbitrade/execution/sequencer.py

@@ -5,9 +5,16 @@ from dataclasses import dataclass
 from datetime import UTC, datetime
 from typing import Any, Protocol
 
+from arbitrade.alerting.notifier import SupportsAlerts
 from arbitrade.detection.engine import OpportunityEvent
 from arbitrade.storage.executions import AsyncExecutionWriter
-from arbitrade.storage.repositories import OrderRecord, PnLRecord, TradeRecord
+from arbitrade.storage.repositories import (
+    AuditRecord,
+    AuditRepository,
+    OrderRecord,
+    PnLRecord,
+    TradeRecord,
+)
 
 
 class SupportsOrderPlacement(Protocol):
@@ -42,11 +49,15 @@ class TriangularExecutionSequencer:
         available_pairs: Sequence[str],
         volume_for_leg: Callable[[OpportunityEvent, ExecutionLeg, int], float] | None = None,
         execution_writer: AsyncExecutionWriter | None = None,
+        alert_notifier: SupportsAlerts | None = None,
+        audit_repository: AuditRepository | None = None,
     ) -> None:
         self._rest_client = rest_client
         self._available_pairs = {self._normalize_pair(pair) for pair in available_pairs}
         self._volume_for_leg = volume_for_leg or self._default_volume_for_leg
         self._execution_writer = execution_writer
+        self._alert_notifier = alert_notifier
+        self._audit_repository = audit_repository
 
     @staticmethod
     def _normalize_pair(pair: str) -> str:
@@ -146,6 +157,33 @@ class TriangularExecutionSequencer:
                     volume=leg.volume,
                 )
             except Exception as exc:
+                if self._audit_repository is not None:
+                    self._audit_repository.insert(
+                        AuditRecord(
+                            occurred_at=datetime.now(UTC),
+                            actor="execution_engine",
+                            event_type="execution.trade.failed",
+                            decision="rejected",
+                            payload={
+                                "cycle": event.cycle,
+                                "failed_leg_index": idx,
+                                "error": str(exc),
+                            },
+                            correlation_id=trade_ref,
+                        )
+                    )
+                if self._alert_notifier is not None:
+                    await self._alert_notifier.notify(
+                        category="error",
+                        severity="error",
+                        title="Trade execution failed",
+                        message="Triangular execution failed before completing all legs.",
+                        details={
+                            "cycle": event.cycle,
+                            "failed_leg_index": str(idx),
+                            "error": str(exc),
+                        },
+                    )
                 if self._execution_writer is not None:
                     await self._execution_writer.enqueue(
                         TradeRecord(
@@ -213,6 +251,35 @@ class TriangularExecutionSequencer:
                 )
             )
 
+        if self._alert_notifier is not None:
+            await self._alert_notifier.notify(
+                category="trade",
+                severity="warning" if event.est_profit < 0.0 else "info",
+                title="Trade execution completed",
+                message="Triangular execution completed all requested legs.",
+                details={
+                    "cycle": event.cycle,
+                    "completed_legs": str(len(legs)),
+                    "estimated_pnl_usd": f"{event.est_profit}",
+                },
+            )
+
+        if self._audit_repository is not None:
+            self._audit_repository.insert(
+                AuditRecord(
+                    occurred_at=datetime.now(UTC),
+                    actor="execution_engine",
+                    event_type="execution.trade.completed",
+                    decision="approved",
+                    payload={
+                        "cycle": event.cycle,
+                        "completed_legs": len(legs),
+                        "estimated_pnl_usd": event.est_profit,
+                    },
+                    correlation_id=trade_ref,
+                )
+            )
+
         return TriangularExecutionResult(
             success=True,
             requested_legs=legs,

src/arbitrade/market_data/feed.py

@@ -7,6 +7,7 @@ from datetime import UTC, datetime
 
 import structlog
 
+from arbitrade.alerting.notifier import SupportsAlerts, dispatch_alert_nowait
 from arbitrade.detection.engine import IncrementalCycleDetector, OpportunityEvent
 from arbitrade.exchange.kraken_ws import KrakenWsClient
 from arbitrade.market_data.order_book import OrderBook
@@ -17,6 +18,7 @@ from arbitrade.risk.stop_conditions import StopConditionsGuard
 from arbitrade.risk.trade_limits import TradeLimitsGuard
 from arbitrade.storage.market_snapshots import AsyncMarketSnapshotWriter, MarketSnapshot
 from arbitrade.storage.opportunities import AsyncOpportunityWriter
+from arbitrade.storage.repositories import AuditRecord, AuditRepository
 
 _LOG = structlog.get_logger(__name__)
 
@@ -47,6 +49,8 @@ class MarketDataFeed:
         quote_balance_asset: str = "USD",
         kill_switch: KillSwitch | None = None,
         stop_conditions_guard: StopConditionsGuard | None = None,
+        alert_notifier: SupportsAlerts | None = None,
+        audit_repository: AuditRepository | None = None,
     ) -> None:
         self._ws_client = ws_client
         self._snapshot_writer = snapshot_writer
@@ -64,6 +68,8 @@ class MarketDataFeed:
         self._quote_balance_asset = quote_balance_asset.upper()
         self._kill_switch = kill_switch
         self._stop_conditions_guard = stop_conditions_guard
+        self._alert_notifier = alert_notifier
+        self._audit_repository = audit_repository
 
         if self._trade_capital <= 0.0:
             raise ValueError("trade_capital must be > 0.0")
@@ -137,6 +143,20 @@ class MarketDataFeed:
                         reason=self._stop_conditions_guard.halted_reason,
                         symbol=delta.symbol,
                     )
+                    if self._audit_repository is not None:
+                        self._audit_repository.insert(
+                            AuditRecord(
+                                occurred_at=datetime.now(UTC),
+                                actor="risk_manager",
+                                event_type="risk.stop_condition_halt",
+                                decision="rejected",
+                                payload={
+                                    "reason": self._stop_conditions_guard.halted_reason
+                                    or "unknown",
+                                    "symbol": delta.symbol,
+                                },
+                            )
+                        )
 
             if self._detector is not None:
                 opportunities = self._detector.opportunities_for_updated_pair(
@@ -151,6 +171,21 @@ class MarketDataFeed:
                 )
 
                 for event in opportunities:
+                    if self._audit_repository is not None:
+                        self._audit_repository.insert(
+                            AuditRecord(
+                                occurred_at=datetime.now(UTC),
+                                actor="detector",
+                                event_type="detector.opportunity",
+                                decision="scored",
+                                payload={
+                                    "cycle": event.cycle,
+                                    "updated_pair": event.updated_pair,
+                                    "net_pct": event.net_pct,
+                                    "est_profit": event.est_profit,
+                                },
+                            )
+                        )
                     _LOG.info(
                         "opportunity_detected",
                         cycle=event.cycle,
@@ -171,6 +206,19 @@ class MarketDataFeed:
                             updated_pair=event.updated_pair,
                             net_pct=event.net_pct,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="execution_engine",
+                                    event_type="execution.paper_trade",
+                                    decision="skipped",
+                                    payload={
+                                        "cycle": event.cycle,
+                                        "updated_pair": event.updated_pair,
+                                    },
+                                )
+                            )
                         continue
 
                     if self._opportunity_executor is None:
@@ -179,6 +227,19 @@ class MarketDataFeed:
                             cycle=event.cycle,
                             updated_pair=event.updated_pair,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="execution_engine",
+                                    event_type="execution.live_trade",
+                                    decision="rejected",
+                                    payload={
+                                        "reason": "missing_executor",
+                                        "cycle": event.cycle,
+                                    },
+                                )
+                            )
                         continue
 
                     if self._kill_switch is not None and self._kill_switch.is_active:
@@ -188,6 +249,19 @@ class MarketDataFeed:
                             updated_pair=event.updated_pair,
                             reason=self._kill_switch.reason,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="risk_manager",
+                                    event_type="risk.kill_switch",
+                                    decision="rejected",
+                                    payload={
+                                        "reason": self._kill_switch.reason or "manual",
+                                        "cycle": event.cycle,
+                                    },
+                                )
+                            )
                         continue
 
                     if (
@@ -200,6 +274,20 @@ class MarketDataFeed:
                             updated_pair=event.updated_pair,
                             reason=self._stop_conditions_guard.halted_reason,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="risk_manager",
+                                    event_type="risk.stop_condition",
+                                    decision="rejected",
+                                    payload={
+                                        "reason": self._stop_conditions_guard.halted_reason
+                                        or "halted",
+                                        "cycle": event.cycle,
+                                    },
+                                )
+                            )
                         continue
 
                     if self._loss_limit_guard is not None and self._loss_limit_guard.is_halted:
@@ -209,6 +297,19 @@ class MarketDataFeed:
                             updated_pair=event.updated_pair,
                             reason=self._loss_limit_guard.halted_reason,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="risk_manager",
+                                    event_type="risk.loss_limit",
+                                    decision="rejected",
+                                    payload={
+                                        "reason": self._loss_limit_guard.halted_reason or "halted",
+                                        "cycle": event.cycle,
+                                    },
+                                )
+                            )
                         continue
 
                     if self._pre_trade_validator is not None and self._balance_provider is not None:
@@ -227,6 +328,22 @@ class MarketDataFeed:
                                 updated_pair=event.updated_pair,
                                 required_by_asset=required_balances,
                             )
+                            if self._audit_repository is not None:
+                                self._audit_repository.insert(
+                                    AuditRecord(
+                                        occurred_at=datetime.now(UTC),
+                                        actor="risk_manager",
+                                        event_type="risk.pre_trade_validation",
+                                        decision="rejected",
+                                        payload={
+                                            "cycle": event.cycle,
+                                            "required_by_asset": {
+                                                key: required_balances[key]
+                                                for key in required_balances
+                                            },
+                                        },
+                                    )
+                                )
                             continue
 
                     exposure_by_asset = self._exposure_for_event(event)
@@ -240,6 +357,21 @@ class MarketDataFeed:
                             updated_pair=event.updated_pair,
                             exposure_by_asset=exposure_by_asset,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="risk_manager",
+                                    event_type="risk.trade_limits",
+                                    decision="rejected",
+                                    payload={
+                                        "cycle": event.cycle,
+                                        "exposure_by_asset": {
+                                            key: exposure_by_asset[key] for key in exposure_by_asset
+                                        },
+                                    },
+                                )
+                            )
                         continue
 
                     if self._trade_limits_guard is not None:
@@ -247,10 +379,23 @@ class MarketDataFeed:
 
                     try:
                         outcome = await self._opportunity_executor(event)
-                    except Exception:
+                    except Exception as exc:
                         if self._trade_limits_guard is not None:
                             self._trade_limits_guard.close_trade(exposure_by_asset)
 
+                        dispatch_alert_nowait(
+                            self._alert_notifier,
+                            category="system",
+                            severity="critical",
+                            title="Critical execution exception",
+                            message="Unhandled exception raised by opportunity executor.",
+                            details={
+                                "cycle": event.cycle,
+                                "updated_pair": event.updated_pair,
+                                "error": str(exc),
+                            },
+                        )
+
                         if self._stop_conditions_guard is not None:
                             self._stop_conditions_guard.register_failure()
                             if self._stop_conditions_guard.is_halted:
@@ -274,6 +419,20 @@ class MarketDataFeed:
                             cycle=event.cycle,
                             updated_pair=event.updated_pair,
                         )
+                        if self._audit_repository is not None:
+                            self._audit_repository.insert(
+                                AuditRecord(
+                                    occurred_at=datetime.now(UTC),
+                                    actor="execution_engine",
+                                    event_type="execution.live_trade",
+                                    decision="error",
+                                    payload={
+                                        "cycle": event.cycle,
+                                        "updated_pair": event.updated_pair,
+                                        "error": str(exc),
+                                    },
+                                )
+                            )
                         continue
 
                     if self._stop_conditions_guard is not None:
@@ -299,6 +458,22 @@ class MarketDataFeed:
                     if self._trade_limits_guard is not None and close_trade:
                         self._trade_limits_guard.close_trade(exposure_by_asset)
 
+                    if self._audit_repository is not None:
+                        self._audit_repository.insert(
+                            AuditRecord(
+                                occurred_at=datetime.now(UTC),
+                                actor="execution_engine",
+                                event_type="execution.live_trade",
+                                decision="approved",
+                                payload={
+                                    "cycle": event.cycle,
+                                    "updated_pair": event.updated_pair,
+                                    "realized_pnl": realized_pnl,
+                                    "close_trade": close_trade,
+                                },
+                            )
+                        )
+
             await self._snapshot_writer.enqueue(
                 MarketSnapshot(
                     snapshot_at=datetime.now(UTC),

src/arbitrade/risk/loss_limits.py

@@ -2,6 +2,8 @@ from __future__ import annotations
 
 from datetime import UTC, date, datetime
 
+from arbitrade.alerting.notifier import SupportsAlerts, dispatch_alert_nowait
+
 
 class LossLimitGuard:
     def __init__(
@@ -9,6 +11,7 @@ class LossLimitGuard:
         *,
         daily_loss_limit: float | None = None,
         cumulative_loss_limit: float | None = None,
+        alert_notifier: SupportsAlerts | None = None,
     ) -> None:
         self._daily_loss_limit = daily_loss_limit
         self._cumulative_loss_limit = cumulative_loss_limit
@@ -21,6 +24,7 @@ class LossLimitGuard:
         self._cumulative_pnl = 0.0
         self._daily_pnl: dict[date, float] = {}
         self._halted_reason: str | None = None
+        self._alert_notifier = alert_notifier
 
     @property
     def cumulative_pnl(self) -> float:
@@ -52,6 +56,17 @@ class LossLimitGuard:
             and self._daily_pnl[day_key] <= -self._daily_loss_limit
         ):
             self._halted_reason = "daily_loss_limit_breached"
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="critical",
+                title="Daily loss limit breached",
+                message="Trading halted because daily realized PnL crossed configured loss limit.",
+                details={
+                    "daily_pnl": f"{self._daily_pnl[day_key]}",
+                    "daily_loss_limit": f"{self._daily_loss_limit}",
+                },
+            )
             return
 
         if (
@@ -59,3 +74,17 @@ class LossLimitGuard:
             and self._cumulative_pnl <= -self._cumulative_loss_limit
         ):
             self._halted_reason = "cumulative_loss_limit_breached"
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="critical",
+                title="Cumulative loss limit breached",
+                message=(
+                    "Trading halted because cumulative realized PnL crossed "
+                    "configured loss limit."
+                ),
+                details={
+                    "cumulative_pnl": f"{self._cumulative_pnl}",
+                    "cumulative_loss_limit": f"{self._cumulative_loss_limit}",
+                },
+            )

src/arbitrade/risk/stop_conditions.py

@@ -1,5 +1,7 @@
 from __future__ import annotations
 
+from arbitrade.alerting.notifier import SupportsAlerts, dispatch_alert_nowait
+
 
 class StopConditionsGuard:
     def __init__(
@@ -8,6 +10,7 @@ class StopConditionsGuard:
         max_source_latency_ms: float | None = None,
         max_apply_latency_ms: float | None = None,
         max_consecutive_failures: int | None = None,
+        alert_notifier: SupportsAlerts | None = None,
     ) -> None:
         if max_source_latency_ms is not None and max_source_latency_ms <= 0.0:
             raise ValueError("max_source_latency_ms must be > 0.0")
@@ -22,6 +25,7 @@ class StopConditionsGuard:
 
         self._consecutive_failures = 0
         self._halted_reason: str | None = None
+        self._alert_notifier = alert_notifier
 
     @property
     def halted_reason(self) -> str | None:
@@ -50,10 +54,32 @@ class StopConditionsGuard:
             and source_latency_ms > self._max_source_latency_ms
         ):
             self._halted_reason = "source_latency_limit_breached"
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="critical",
+                title="Source latency limit breached",
+                message="Trading halted because source latency exceeded configured limit.",
+                details={
+                    "source_latency_ms": f"{source_latency_ms}",
+                    "max_source_latency_ms": f"{self._max_source_latency_ms}",
+                },
+            )
             return
 
         if self._max_apply_latency_ms is not None and apply_latency_ms > self._max_apply_latency_ms:
             self._halted_reason = "apply_latency_limit_breached"
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="critical",
+                title="Apply latency limit breached",
+                message="Trading halted because apply latency exceeded configured limit.",
+                details={
+                    "apply_latency_ms": f"{apply_latency_ms}",
+                    "max_apply_latency_ms": f"{self._max_apply_latency_ms}",
+                },
+            )
 
     def register_failure(self) -> None:
         if self.is_halted:
@@ -65,6 +91,17 @@ class StopConditionsGuard:
             and self._consecutive_failures >= self._max_consecutive_failures
         ):
             self._halted_reason = "consecutive_failures_limit_breached"
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="critical",
+                title="Consecutive failures limit breached",
+                message="Trading halted because consecutive failures exceeded configured limit.",
+                details={
+                    "consecutive_failures": f"{self._consecutive_failures}",
+                    "max_consecutive_failures": f"{self._max_consecutive_failures}",
+                },
+            )
 
     def register_success(self) -> None:
         if self.is_halted:

src/arbitrade/risk/trade_limits.py

@@ -2,6 +2,8 @@ from __future__ import annotations
 
 from collections.abc import Mapping
 
+from arbitrade.alerting.notifier import SupportsAlerts, dispatch_alert_nowait
+
 
 class TradeLimitsGuard:
     def __init__(
@@ -9,6 +11,7 @@ class TradeLimitsGuard:
         *,
         max_concurrent_trades: int | None = None,
         max_exposure_per_asset: float | None = None,
+        alert_notifier: SupportsAlerts | None = None,
     ) -> None:
         if max_concurrent_trades is not None and max_concurrent_trades <= 0:
             raise ValueError("max_concurrent_trades must be > 0")
@@ -19,6 +22,7 @@ class TradeLimitsGuard:
         self._max_exposure_per_asset = max_exposure_per_asset
         self._active_trades = 0
         self._asset_exposure: dict[str, float] = {}
+        self._alert_notifier = alert_notifier
 
     @property
     def active_trades(self) -> int:
@@ -32,6 +36,17 @@ class TradeLimitsGuard:
             self._max_concurrent_trades is not None
             and self._active_trades >= self._max_concurrent_trades
         ):
+            dispatch_alert_nowait(
+                self._alert_notifier,
+                category="threshold",
+                severity="warning",
+                title="Concurrent trade limit reached",
+                message="Trade rejected by concurrent trade cap.",
+                details={
+                    "active_trades": f"{self._active_trades}",
+                    "max_concurrent_trades": f"{self._max_concurrent_trades}",
+                },
+            )
             return False
 
         if self._max_exposure_per_asset is None:
@@ -43,6 +58,18 @@ class TradeLimitsGuard:
             key = asset.upper()
             next_exposure = self._asset_exposure.get(key, 0.0) + exposure
             if next_exposure > self._max_exposure_per_asset:
+                dispatch_alert_nowait(
+                    self._alert_notifier,
+                    category="threshold",
+                    severity="warning",
+                    title="Asset exposure limit reached",
+                    message="Trade rejected by per-asset exposure cap.",
+                    details={
+                        "asset": key,
+                        "next_exposure": f"{next_exposure}",
+                        "max_exposure_per_asset": f"{self._max_exposure_per_asset}",
+                    },
+                )
                 return False
 
         return True

src/arbitrade/runtime/__init__.py

@@ -0,0 +1,15 @@
+"""Runtime lifecycle and recovery helpers."""
+
+from arbitrade.runtime.lifecycle import (
+    RuntimeRecoveryReport,
+    graceful_shutdown,
+    persist_runtime_snapshot,
+    restore_runtime_state,
+)
+
+__all__ = [
+    "RuntimeRecoveryReport",
+    "graceful_shutdown",
+    "persist_runtime_snapshot",
+    "restore_runtime_state",
+]

src/arbitrade/runtime/lifecycle.py

@@ -0,0 +1,224 @@
+from __future__ import annotations
+
+import inspect
+from dataclasses import dataclass
+from datetime import UTC, datetime
+from typing import Any, cast
+
+from fastapi import FastAPI
+
+from arbitrade.api.control_state import DashboardControlState
+from arbitrade.storage.db import DuckDBStore
+from arbitrade.storage.repositories import (
+    AuditRecord,
+    AuditRepository,
+    RuntimeStateRecord,
+    RuntimeStateRepository,
+)
+
+
+@dataclass(slots=True)
+class RuntimeRecoveryReport:
+    restored_from_snapshot: bool
+    snapshot_at: str | None
+    open_trades_detected: int
+    restart_guard_active: bool
+
+
+def _controls(app: FastAPI) -> DashboardControlState:
+    return cast(DashboardControlState, app.state.dashboard_controls)
+
+
+def _store(app: FastAPI) -> DuckDBStore:
+    return cast(DuckDBStore, app.state.store)
+
+
+def _audit_repository(app: FastAPI) -> AuditRepository | None:
+    repository = getattr(app.state, "audit_repository", None)
+    return repository if isinstance(repository, AuditRepository) else None
+
+
+def _runtime_repository(app: FastAPI) -> RuntimeStateRepository | None:
+    repository = getattr(app.state, "runtime_state_repository", None)
+    return repository if isinstance(repository, RuntimeStateRepository) else None
+
+
+def _open_trade_count(store: DuckDBStore) -> int:
+    with store.connect() as conn:
+        row = conn.execute("""
+            SELECT COUNT(*)
+            FROM trades
+            WHERE finished_at IS NULL
+            """).fetchone()
+    return int(row[0]) if row is not None else 0
+
+
+def _latest_balances(store: DuckDBStore) -> dict[str, Any] | None:
+    with store.connect() as conn:
+        row = conn.execute("""
+            SELECT balances
+            FROM portfolio_snapshots
+            ORDER BY snapshot_at DESC
+            LIMIT 1
+            """).fetchone()
+
+    if row is None or row[0] is None:
+        return None
+    raw_balances = row[0]
+    if isinstance(raw_balances, str):
+        return {"raw": raw_balances}
+    return {"raw": str(raw_balances)}
+
+
+def _record_audit(
+    app: FastAPI,
+    *,
+    event_type: str,
+    decision: str,
+    payload: dict[str, Any] | None = None,
+) -> None:
+    repository = _audit_repository(app)
+    if repository is None:
+        return
+    repository.insert(
+        AuditRecord(
+            occurred_at=datetime.now(UTC),
+            actor="runtime",
+            event_type=event_type,
+            decision=decision,
+            payload=payload,
+            correlation_id=None,
+        )
+    )
+
+
+async def _run_startup_reconciler(app: FastAPI) -> None:
+    reconciler = getattr(app.state, "startup_reconciler", None)
+    if reconciler is None:
+        return
+
+    reconcile_member = getattr(reconciler, "reconcile_open_trades", None)
+    if reconcile_member is None or not callable(reconcile_member):
+        return
+
+    result = reconcile_member()
+    if inspect.isawaitable(result):
+        await result
+
+
+def persist_runtime_snapshot(app: FastAPI, *, note: str | None = None) -> RuntimeStateRecord | None:
+    repository = _runtime_repository(app)
+    if repository is None:
+        return None
+
+    controls = _controls(app)
+    store = _store(app)
+    snapshot = RuntimeStateRecord(
+        snapshot_at=datetime.now(UTC),
+        is_running=controls.is_running,
+        kill_switch_active=controls.kill_switch.is_active,
+        kill_switch_reason=controls.kill_switch.reason,
+        open_trade_count=_open_trade_count(store),
+        last_known_balances=_latest_balances(store),
+        note=note,
+    )
+    repository.insert(snapshot)
+    return snapshot
+
+
+async def restore_runtime_state(app: FastAPI) -> RuntimeRecoveryReport:
+    controls = _controls(app)
+    store = _store(app)
+    runtime_repository = _runtime_repository(app)
+
+    restored_from_snapshot = False
+    snapshot_at: str | None = None
+
+    latest = runtime_repository.latest() if runtime_repository is not None else None
+    if latest is not None:
+        restored_from_snapshot = True
+        snapshot_at = latest.snapshot_at.isoformat()
+        controls.is_running = latest.is_running
+        if latest.kill_switch_active:
+            controls.kill_switch.activate(
+                reason=latest.kill_switch_reason or "recovered")
+        else:
+            controls.kill_switch.deactivate()
+        controls.mark_updated()
+
+    open_trades = _open_trade_count(store)
+    restart_guard_active = False
+    if open_trades > 0:
+        controls.is_running = False
+        if not controls.kill_switch.is_active:
+            controls.kill_switch.activate(
+                reason="recovery_open_trades_detected")
+        controls.mark_updated()
+        restart_guard_active = True
+
+    report = RuntimeRecoveryReport(
+        restored_from_snapshot=restored_from_snapshot,
+        snapshot_at=snapshot_at,
+        open_trades_detected=open_trades,
+        restart_guard_active=restart_guard_active,
+    )
+    app.state.recovery_report = report
+
+    _record_audit(
+        app,
+        event_type="runtime.startup_recovery",
+        decision="applied",
+        payload={
+            "restored_from_snapshot": restored_from_snapshot,
+            "open_trades_detected": open_trades,
+            "restart_guard_active": restart_guard_active,
+        },
+    )
+
+    await _run_startup_reconciler(app)
+
+    return report
+
+
+async def drain_background_workers(app: FastAPI) -> None:
+    workers: list[object] = []
+
+    declared = getattr(app.state, "background_workers", None)
+    if isinstance(declared, list):
+        workers.extend(declared)
+
+    for attr_name in ("execution_writer", "opportunity_writer", "snapshot_writer"):
+        worker = getattr(app.state, attr_name, None)
+        if worker is not None:
+            workers.append(worker)
+
+    seen: set[int] = set()
+    for worker in workers:
+        worker_id = id(worker)
+        if worker_id in seen:
+            continue
+        seen.add(worker_id)
+
+        stop_member = getattr(worker, "stop", None)
+        if stop_member is None or not callable(stop_member):
+            continue
+
+        result = stop_member()
+        if inspect.isawaitable(result):
+            await result
+
+
+async def graceful_shutdown(app: FastAPI) -> None:
+    controls = _controls(app)
+    controls.is_running = False
+    controls.mark_updated()
+
+    _record_audit(
+        app,
+        event_type="runtime.shutdown",
+        decision="initiated",
+        payload={"execution_status": "stopped"},
+    )
+
+    await drain_background_workers(app)
+    persist_runtime_snapshot(app, note="graceful_shutdown")

src/arbitrade/storage/db.py

@@ -78,6 +78,26 @@ CREATE TABLE IF NOT EXISTS market_snapshots (
     payload JSON NOT NULL,
     latency_ms DOUBLE
 );
+
+CREATE TABLE IF NOT EXISTS audit_events (
+    id UUID DEFAULT uuid(),
+    occurred_at TIMESTAMP NOT NULL,
+    actor VARCHAR NOT NULL,
+    event_type VARCHAR NOT NULL,
+    decision VARCHAR NOT NULL,
+    payload JSON,
+    correlation_id VARCHAR
+);
+
+CREATE TABLE IF NOT EXISTS runtime_state_snapshots (
+    snapshot_at TIMESTAMP NOT NULL,
+    is_running BOOLEAN NOT NULL,
+    kill_switch_active BOOLEAN NOT NULL,
+    kill_switch_reason VARCHAR,
+    open_trade_count INTEGER NOT NULL,
+    last_known_balances JSON,
+    note VARCHAR
+);
 """
 
 

src/arbitrade/storage/repositories.py

@@ -66,6 +66,27 @@ class PnLRecord:
     source: str
 
 
+@dataclass(slots=True)
+class AuditRecord:
+    occurred_at: datetime
+    actor: str
+    event_type: str
+    decision: str
+    payload: dict[str, Any] | None = None
+    correlation_id: str | None = None
+
+
+@dataclass(slots=True)
+class RuntimeStateRecord:
+    snapshot_at: datetime
+    is_running: bool
+    kill_switch_active: bool
+    kill_switch_reason: str | None
+    open_trade_count: int
+    last_known_balances: dict[str, Any] | None = None
+    note: str | None = None
+
+
 class MarketSnapshotRepository:
     def __init__(self, store: DuckDBStore) -> None:
         self._store = store
@@ -217,3 +238,141 @@ class PnLRepository:
                     record.source,
                 ],
             )
+
+
+class AuditRepository:
+    def __init__(self, store: DuckDBStore) -> None:
+        self._store = store
+
+    def insert(self, record: AuditRecord) -> None:
+        with self._store.connect() as conn:
+            conn.execute(
+                """
+                INSERT INTO audit_events (
+                    occurred_at,
+                    actor,
+                    event_type,
+                    decision,
+                    payload,
+                    correlation_id
+                )
+                VALUES (?, ?, ?, ?, ?, ?)
+                """,
+                [
+                    record.occurred_at,
+                    record.actor,
+                    record.event_type,
+                    record.decision,
+                    (
+                        None
+                        if record.payload is None
+                        else orjson.dumps(record.payload).decode("utf-8")
+                    ),
+                    record.correlation_id,
+                ],
+            )
+
+    def list_recent(self, *, limit: int = 25) -> list[AuditRecord]:
+        with self._store.connect() as conn:
+            rows = conn.execute(
+                """
+                SELECT occurred_at, actor, event_type, decision, payload, correlation_id
+                FROM audit_events
+                ORDER BY occurred_at DESC
+                LIMIT ?
+                """,
+                [limit],
+            ).fetchall()
+
+        records: list[AuditRecord] = []
+        for row in rows:
+            payload: dict[str, Any] | None = None
+            raw_payload = row[4]
+            if isinstance(raw_payload, str) and raw_payload:
+                decoded = orjson.loads(raw_payload)
+                if isinstance(decoded, dict):
+                    payload = {str(k): decoded[k] for k in decoded}
+
+            records.append(
+                AuditRecord(
+                    occurred_at=row[0],
+                    actor=str(row[1]),
+                    event_type=str(row[2]),
+                    decision=str(row[3]),
+                    payload=payload,
+                    correlation_id=str(row[5]) if row[5] is not None else None,
+                )
+            )
+
+        return records
+
+
+class RuntimeStateRepository:
+    def __init__(self, store: DuckDBStore) -> None:
+        self._store = store
+
+    def insert(self, record: RuntimeStateRecord) -> None:
+        with self._store.connect() as conn:
+            conn.execute(
+                """
+                INSERT INTO runtime_state_snapshots (
+                    snapshot_at,
+                    is_running,
+                    kill_switch_active,
+                    kill_switch_reason,
+                    open_trade_count,
+                    last_known_balances,
+                    note
+                )
+                VALUES (?, ?, ?, ?, ?, ?, ?)
+                """,
+                [
+                    record.snapshot_at,
+                    record.is_running,
+                    record.kill_switch_active,
+                    record.kill_switch_reason,
+                    record.open_trade_count,
+                    (
+                        None
+                        if record.last_known_balances is None
+                        else orjson.dumps(record.last_known_balances).decode("utf-8")
+                    ),
+                    record.note,
+                ],
+            )
+
+    def latest(self) -> RuntimeStateRecord | None:
+        with self._store.connect() as conn:
+            row = conn.execute("""
+                SELECT
+                    snapshot_at,
+                    is_running,
+                    kill_switch_active,
+                    kill_switch_reason,
+                    open_trade_count,
+                    last_known_balances,
+                    note
+                FROM runtime_state_snapshots
+                ORDER BY snapshot_at DESC
+                LIMIT 1
+                """).fetchone()
+
+        if row is None:
+            return None
+
+        balances: dict[str, Any] | None = None
+        raw_balances = row[5]
+        if isinstance(raw_balances, str) and raw_balances:
+            decoded = orjson.loads(raw_balances)
+            if isinstance(decoded, dict):
+                balances = {str(key): decoded[key] for key in decoded}
+
+        return RuntimeStateRecord(
+            snapshot_at=row[0],
+            is_running=bool(row[1]),
+            kill_switch_active=bool(row[2]),
+            kill_switch_reason=str(row[3]) if row[3] is not None else None,
+            open_trade_count=int(row[4]),
+            last_known_balances=balances,
+            note=str(row[6]) if row[6] is not None else None,
+        )

tests/test_dashboard.py

@@ -1,6 +1,7 @@
 from __future__ import annotations
 
 from datetime import UTC, datetime, timedelta
+from typing import Any
 
 import httpx
 
@@ -8,6 +9,31 @@ from arbitrade.api.app import create_app
 from arbitrade.config.settings import Settings
 
 
+class _FakeAlertNotifier:
+    def __init__(self) -> None:
+        self.events: list[dict[str, Any]] = []
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                "details": details or {},
+            }
+        )
+        return True
+
+
 def _seed_metrics_data(app) -> None:
     store = app.state.store
     started = datetime.now(UTC)
@@ -135,6 +161,7 @@ async def test_dashboard_page_and_fragment_and_sse(tmp_path) -> None:
         overview_stream = await client.get("/dashboard/stream/overview")
         controls = await client.get("/dashboard/fragment/controls")
         charts = await client.get("/dashboard/fragment/charts")
+        audit = await client.get("/dashboard/fragment/audit")
 
     assert page.status_code == 200
     assert "EventSource" in page.text
@@ -143,6 +170,7 @@ async def test_dashboard_page_and_fragment_and_sse(tmp_path) -> None:
     assert 'hx-get="/dashboard/fragment/metrics"' in page.text
     assert 'hx-get="/dashboard/fragment/controls"' in page.text
     assert 'hx-get="/dashboard/fragment/charts"' in page.text
+    assert 'hx-get="/dashboard/fragment/audit"' in page.text
 
     assert fragment.status_code == 200
     assert "Realized P&L" in fragment.text
@@ -163,14 +191,15 @@ async def test_dashboard_page_and_fragment_and_sse(tmp_path) -> None:
     assert "trade-open" in overview.text
 
     assert overview_stream.status_code == 200
-    assert overview_stream.headers["content-type"].startswith(
-        "text/event-stream")
+    assert overview_stream.headers["content-type"].startswith("text/event-stream")
     assert "event: overview" in overview_stream.text
     assert "trade-open" in overview_stream.text
 
     assert controls.status_code == 200
     assert "Runtime Status" in controls.text
     assert ">running<" in controls.text
+    assert "Alerting" in controls.text
+    assert "Last result" in controls.text
     assert "Paper trading mode" in controls.text
     assert "Trade capital USD" in controls.text
 
@@ -179,6 +208,9 @@ async def test_dashboard_page_and_fragment_and_sse(tmp_path) -> None:
     assert "opportunity-chart" in charts.text
     assert "Hide chart" in charts.text or "Show chart" in charts.text
 
+    assert audit.status_code == 200
+    assert "Audit Trail" in audit.text
+
 
 async def test_dashboard_controls_update_runtime_state_and_config(tmp_path) -> None:
     app = create_app(Settings(DUCKDB_PATH=tmp_path / "controls.duckdb"))
@@ -220,6 +252,36 @@ async def test_dashboard_controls_update_runtime_state_and_config(tmp_path) -> N
     assert app.state.settings.max_concurrent_trades == 4
     assert app.state.settings.paper_trading_mode is True
 
+    transport = httpx.ASGITransport(app=app)
+    async with httpx.AsyncClient(transport=transport, base_url="http://test") as client:
+        audit_recent = await client.get("/dashboard/api/audit/recent")
+
+    assert audit_recent.status_code == 200
+    entries = audit_recent.json()["entries"]
+    assert len(entries) >= 4
+    assert any(entry["event_type"] == "dashboard.control.stop" for entry in entries)
+    assert any(entry["event_type"] == "dashboard.control.start" for entry in entries)
+    assert any(entry["event_type"] == "dashboard.control.kill_switch" for entry in entries)
+    assert any(entry["event_type"] == "dashboard.control.config" for entry in entries)
+
+
+async def test_dashboard_controls_emit_alerts(tmp_path) -> None:
+    app = create_app(Settings(DUCKDB_PATH=tmp_path / "alerts.duckdb"))
+    fake_notifier = _FakeAlertNotifier()
+    app.state.alert_notifier = fake_notifier
+
+    transport = httpx.ASGITransport(app=app)
+    async with httpx.AsyncClient(transport=transport, base_url="http://test") as client:
+        await client.post("/dashboard/control/start")
+        await client.post("/dashboard/control/stop")
+        await client.post("/dashboard/control/kill-switch", data={"reason": "manual-test"})
+
+    assert len(fake_notifier.events) == 3
+    assert fake_notifier.events[0]["title"] == "Execution started"
+    assert fake_notifier.events[1]["title"] == "Execution stopped"
+    assert fake_notifier.events[2]["title"] == "Kill switch activated"
+    assert fake_notifier.events[2]["details"]["reason"] == "manual-test"
+
 
 async def test_dashboard_requires_basic_auth_when_configured(tmp_path) -> None:
     app = create_app(
@@ -243,3 +305,17 @@ async def test_dashboard_requires_basic_auth_when_configured(tmp_path) -> None:
     assert unauthenticated.headers["www-authenticate"] == 'Basic realm="Arbitrade Dashboard"'
     assert authenticated.status_code == 200
     assert health.status_code == 200
+
+
+async def test_dashboard_alert_status_api_exposes_notifier_snapshot(tmp_path) -> None:
+    app = create_app(Settings(DUCKDB_PATH=tmp_path / "alerts-status.duckdb"))
+
+    transport = httpx.ASGITransport(app=app)
+    async with httpx.AsyncClient(transport=transport, base_url="http://test") as client:
+        response = await client.get("/dashboard/api/alerts/status")
+
+    assert response.status_code == 200
+    payload = response.json()
+    assert payload["enabled"] is True
+    assert "configured_channels" in payload
+    assert "last_result" in payload

tests/unit/test_alert_notifier.py

@@ -0,0 +1,131 @@
+from __future__ import annotations
+
+from dataclasses import dataclass, field
+
+import pytest
+
+from arbitrade.alerting.notifier import AlertEvent, AlertNotifier
+
+
+@dataclass(slots=True)
+class _FakeChannel:
+    events: list[AlertEvent] = field(default_factory=list)
+    fail: bool = False
+
+    async def send(self, event: AlertEvent) -> None:
+        if self.fail:
+            raise RuntimeError("channel send failed")
+        self.events.append(event)
+
+
+@pytest.mark.asyncio
+async def test_alert_notifier_sends_event_when_enabled() -> None:
+    channel = _FakeChannel()
+    notifier = AlertNotifier([channel], enabled=True, min_severity="info")
+
+    sent = await notifier.notify(
+        category="trade",
+        severity="info",
+        title="Trade complete",
+        message="Completed all legs.",
+    )
+
+    assert sent is True
+    assert len(channel.events) == 1
+    assert channel.events[0].category == "trade"
+
+
+@pytest.mark.asyncio
+async def test_alert_notifier_respects_severity_and_category_filters() -> None:
+    channel = _FakeChannel()
+    notifier = AlertNotifier(
+        [channel],
+        enabled=True,
+        min_severity="error",
+        category_flags={"trade": False, "error": True},
+    )
+
+    low = await notifier.notify(
+        category="error",
+        severity="warning",
+        title="Low",
+        message="Ignored by severity.",
+    )
+    filtered = await notifier.notify(
+        category="trade",
+        severity="critical",
+        title="Trade",
+        message="Ignored by category.",
+    )
+    high = await notifier.notify(
+        category="error",
+        severity="critical",
+        title="High",
+        message="Delivered.",
+    )
+
+    assert low is False
+    assert filtered is False
+    assert high is True
+    assert len(channel.events) == 1
+    assert channel.events[0].title == "High"
+
+
+@pytest.mark.asyncio
+async def test_alert_notifier_applies_dedup_window() -> None:
+    channel = _FakeChannel()
+    notifier = AlertNotifier([channel], dedup_seconds=60.0)
+
+    first = await notifier.notify(
+        category="error",
+        severity="error",
+        title="Burst",
+        message="Same message",
+    )
+    second = await notifier.notify(
+        category="error",
+        severity="error",
+        title="Burst",
+        message="Same message",
+    )
+
+    assert first is True
+    assert second is False
+    assert len(channel.events) == 1
+
+
+@pytest.mark.asyncio
+async def test_alert_notifier_returns_false_when_all_channels_fail() -> None:
+    notifier = AlertNotifier([_FakeChannel(fail=True), _FakeChannel(fail=True)])
+
+    sent = await notifier.notify(
+        category="error",
+        severity="critical",
+        title="Failure",
+        message="Both channels fail.",
+    )
+
+    assert sent is False
+
+
+@pytest.mark.asyncio
+async def test_alert_notifier_exposes_status_snapshot_for_dashboard() -> None:
+    channel = _FakeChannel()
+    notifier = AlertNotifier([channel], enabled=True, min_severity="info", dedup_seconds=30.0)
+
+    await notifier.notify(
+        category="system",
+        severity="warning",
+        title="Reconnect",
+        message="Socket restored.",
+    )
+
+    status = notifier.status_snapshot()
+
+    assert status["enabled"] is True
+    assert status["has_channels"] is True
+    assert status["configured_channels"] == ["_FakeChannel"]
+    assert status["last_result"] == "success"
+    assert status["last_attempted_at"] is not None
+    assert status["last_success_at"] is not None
+    assert status["last_event"] is not None

tests/unit/test_audit_repository.py

@@ -0,0 +1,34 @@
+from __future__ import annotations
+
+from datetime import UTC, datetime
+
+from arbitrade.config.settings import Settings
+from arbitrade.storage.db import DuckDBStore
+from arbitrade.storage.repositories import AuditRecord, AuditRepository
+
+
+def test_audit_repository_inserts_and_lists_recent(tmp_path) -> None:
+    settings = Settings(_env_file=None, DUCKDB_PATH=tmp_path / "audit.duckdb")
+    store = DuckDBStore(settings)
+    store.migrate()
+    repository = AuditRepository(store)
+
+    repository.insert(
+        AuditRecord(
+            occurred_at=datetime.now(UTC),
+            actor="dashboard_user",
+            event_type="dashboard.control.start",
+            decision="approved",
+            payload={"execution_status": "running"},
+            correlation_id="req-1",
+        )
+    )
+
+    recent = repository.list_recent(limit=5)
+
+    assert len(recent) == 1
+    assert recent[0].actor == "dashboard_user"
+    assert recent[0].event_type == "dashboard.control.start"
+    assert recent[0].decision == "approved"
+    assert recent[0].payload == {"execution_status": "running"}
+    assert recent[0].correlation_id == "req-1"

tests/unit/test_execution_sequencer.py

@@ -10,6 +10,31 @@ from arbitrade.detection.engine import OpportunityEvent
 from arbitrade.execution.sequencer import TriangularExecutionSequencer
 
 
+@dataclass(slots=True)
+class _FakeAlertNotifier:
+    events: list[dict[str, str]] = field(default_factory=list)
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                **(details or {}),
+            }
+        )
+        return True
+
+
 @dataclass(slots=True)
 class _FakeRestClient:
     fail_at_call: int | None = None
@@ -42,9 +67,11 @@ def _sample_event(cycle: str = "USD->BTC->ETH->USD") -> OpportunityEvent:
 @pytest.mark.asyncio
 async def test_triangular_sequencer_executes_legs_in_order() -> None:
     client = _FakeRestClient()
+    notifier = _FakeAlertNotifier()
     sequencer = TriangularExecutionSequencer(
         client,
         available_pairs=["BTC/USD", "ETH/BTC", "ETH/USD"],
+        alert_notifier=notifier,
     )
 
     result = await sequencer.execute(_sample_event())
@@ -53,14 +80,19 @@ async def test_triangular_sequencer_executes_legs_in_order() -> None:
     assert result.completed_legs == 3
     assert [call["pair"] for call in client.calls] == ["BTC/USD", "ETH/BTC", "ETH/USD"]
     assert [call["side"] for call in client.calls] == ["buy", "buy", "sell"]
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "trade"
+    assert notifier.events[0]["title"] == "Trade execution completed"
 
 
 @pytest.mark.asyncio
 async def test_triangular_sequencer_stops_on_failed_leg() -> None:
     client = _FakeRestClient(fail_at_call=2)
+    notifier = _FakeAlertNotifier()
     sequencer = TriangularExecutionSequencer(
         client,
         available_pairs=["BTC/USD", "ETH/BTC", "ETH/USD"],
+        alert_notifier=notifier,
     )
 
     result = await sequencer.execute(_sample_event())
@@ -69,6 +101,9 @@ async def test_triangular_sequencer_stops_on_failed_leg() -> None:
     assert result.completed_legs == 1
     assert result.failure_reason is not None
     assert len(client.calls) == 1
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "error"
+    assert notifier.events[0]["title"] == "Trade execution failed"
 
 
 def test_triangular_sequencer_rejects_non_closed_cycle() -> None:

tests/unit/test_kraken_ws.py

@@ -1,7 +1,66 @@
+from __future__ import annotations
+
+import asyncio
+from dataclasses import dataclass, field
+from typing import Any
+
+import orjson
+import pytest
+
 from arbitrade.config.settings import Settings
 from arbitrade.exchange.kraken_ws import KrakenWsClient
 
 
+@dataclass(slots=True)
+class _FakeAlertNotifier:
+    events: list[dict[str, str]] = field(default_factory=list)
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                **(details or {}),
+            }
+        )
+        return True
+
+
+class _FakeWebSocket:
+    def __init__(self, messages: list[Any]) -> None:
+        self._messages = messages
+
+    async def recv(self) -> str:
+        if not self._messages:
+            await asyncio.sleep(0)
+            return orjson.dumps({"channel": "heartbeat"}).decode("utf-8")
+        next_item = self._messages.pop(0)
+        if isinstance(next_item, Exception):
+            raise next_item
+        return next_item
+
+
+class _FakeConnectContext:
+    def __init__(self, ws: _FakeWebSocket) -> None:
+        self._ws = ws
+
+    async def __aenter__(self) -> _FakeWebSocket:
+        return self._ws
+
+    async def __aexit__(self, exc_type: object, exc: object, tb: object) -> bool:
+        return False
+
+
 def test_parse_book_delta() -> None:
     client = KrakenWsClient(Settings())
     message = {
@@ -24,3 +83,59 @@ def test_parse_book_delta() -> None:
     assert len(delta.bids) == 1
     assert len(delta.asks) == 1
     assert delta.checksum == 123
+
+
+@pytest.mark.asyncio
+async def test_connect_stream_emits_disconnect_and_reconnect_alerts(
+    monkeypatch: pytest.MonkeyPatch,
+) -> None:
+    notifier = _FakeAlertNotifier()
+    settings = Settings(_env_file=None, WS_HEARTBEAT_TIMEOUT_SECONDS=1.0)
+    client = KrakenWsClient(settings, alert_notifier=notifier)
+
+    first_payload = orjson.dumps(
+        {"channel": "book", "symbol": "BTC/USD", "data": [{"bids": [], "asks": []}]}
+    ).decode("utf-8")
+    second_payload = orjson.dumps(
+        {"channel": "book", "symbol": "ETH/USD", "data": [{"bids": [], "asks": []}]}
+    ).decode("utf-8")
+
+    sessions = [
+        _FakeWebSocket([first_payload, RuntimeError("socket dropped")]),
+        _FakeWebSocket([second_payload]),
+    ]
+
+    def _fake_connect(*_args: object, **_kwargs: object) -> _FakeConnectContext:
+        return _FakeConnectContext(sessions.pop(0))
+
+    monkeypatch.setattr("arbitrade.exchange.kraken_ws.websockets.connect", _fake_connect)
+
+    stream = client.connect_stream()
+    first = await anext(stream)
+    second = await anext(stream)
+    await client.stop()
+    await stream.aclose()
+
+    assert first.payload["symbol"] == "BTC/USD"
+    assert second.payload["symbol"] == "ETH/USD"
+    titles = [event["title"] for event in notifier.events]
+    assert "WebSocket disconnected" in titles
+    assert "WebSocket reconnected" in titles
+
+
+@pytest.mark.asyncio
+async def test_recv_loop_emits_staleness_alert_on_timeout() -> None:
+    notifier = _FakeAlertNotifier()
+    settings = Settings(_env_file=None, WS_HEARTBEAT_TIMEOUT_SECONDS=0.001)
+    client = KrakenWsClient(settings, alert_notifier=notifier)
+
+    class _NeverReturnsWebSocket:
+        async def recv(self) -> str:
+            await asyncio.sleep(1)
+            return "{}"
+
+    with pytest.raises(TimeoutError):
+        await anext(client._recv_loop(_NeverReturnsWebSocket()))
+
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["title"] == "WebSocket staleness abort"

tests/unit/test_loss_limits.py

@@ -1,12 +1,39 @@
 from __future__ import annotations
 
+import asyncio
 from datetime import UTC, datetime, timedelta
+from typing import Any
 
 import pytest
 
 from arbitrade.risk.loss_limits import LossLimitGuard
 
 
+class _FakeAlertNotifier:
+    def __init__(self) -> None:
+        self.events: list[dict[str, Any]] = []
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                "details": details or {},
+            }
+        )
+        return True
+
+
 def test_loss_limit_guard_tracks_daily_and_cumulative_pnl() -> None:
     guard = LossLimitGuard(daily_loss_limit=100.0, cumulative_loss_limit=200.0)
     t0 = datetime.now(UTC)
@@ -47,3 +74,17 @@ def test_loss_limit_guard_rejects_invalid_limits() -> None:
 
     with pytest.raises(ValueError, match="cumulative_loss_limit"):
         LossLimitGuard(cumulative_loss_limit=-1.0)
+
+
+@pytest.mark.asyncio
+async def test_loss_limit_guard_emits_alert_on_breach() -> None:
+    notifier = _FakeAlertNotifier()
+    guard = LossLimitGuard(daily_loss_limit=50.0, alert_notifier=notifier)
+
+    guard.register_realized_pnl(-60.0, at=datetime.now(UTC))
+    await asyncio.sleep(0)
+
+    assert guard.is_halted
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "threshold"
+    assert notifier.events[0]["title"] == "Daily loss limit breached"

tests/unit/test_market_data_feed.py

@@ -1,5 +1,6 @@
 from __future__ import annotations
 
+import asyncio
 from dataclasses import dataclass
 from datetime import UTC, datetime
 from types import SimpleNamespace
@@ -83,6 +84,31 @@ class _FakeFailingExecutor:
         raise RuntimeError("executor failure")
 
 
+class _FakeAlertNotifier:
+    def __init__(self) -> None:
+        self.events: list[dict[str, str]] = []
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                **(details or {}),
+            }
+        )
+        return True
+
+
 @dataclass(slots=True)
 class _FakeWsClientTwoMessages:
     delta: BookDelta
@@ -430,3 +456,29 @@ async def test_market_data_feed_halts_on_repeated_execution_failures() -> None:
     assert stop_guard.halted_reason == "consecutive_failures_limit_breached"
     assert kill_switch.is_active
     assert kill_switch.reason == "consecutive_failures_limit_breached"
+
+
+@pytest.mark.asyncio
+async def test_market_data_feed_emits_critical_alert_on_executor_exception() -> None:
+    event = _sample_event(allocated_capital=75.0)
+    detector = _FakeDetector(event)
+    executor = _FakeFailingExecutor()
+    notifier = _FakeAlertNotifier()
+    feed = MarketDataFeed(
+        ws_client=_FakeWsClient(_sample_delta()),
+        snapshot_writer=_FakeSnapshotWriter(),
+        detector=detector,
+        opportunity_writer=_FakeOpportunityWriter(),
+        paper_trading_mode=False,
+        opportunity_executor=executor.execute,
+        alert_notifier=notifier,
+    )
+
+    await feed.run()
+    await asyncio.sleep(0)
+
+    assert executor.calls == 1
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "system"
+    assert notifier.events[0]["severity"] == "critical"
+    assert notifier.events[0]["title"] == "Critical execution exception"

tests/unit/test_runtime_lifecycle.py

@@ -0,0 +1,140 @@
+from __future__ import annotations
+
+from dataclasses import dataclass
+from datetime import UTC, datetime
+
+import pytest
+
+from arbitrade.api.app import create_app
+from arbitrade.config.settings import Settings
+from arbitrade.runtime.lifecycle import (
+    graceful_shutdown,
+    persist_runtime_snapshot,
+    restore_runtime_state,
+)
+from arbitrade.storage.repositories import RuntimeStateRecord
+
+
+@dataclass(slots=True)
+class _FakeWorker:
+    stopped: bool = False
+
+    async def stop(self) -> None:
+        self.stopped = True
+
+
+@dataclass(slots=True)
+class _FakeStartupReconciler:
+    called: bool = False
+
+    async def reconcile_open_trades(self) -> None:
+        self.called = True
+
+
+@pytest.mark.asyncio
+async def test_persist_runtime_snapshot_writes_record(tmp_path) -> None:
+    app = create_app(Settings(_env_file=None, DUCKDB_PATH=tmp_path / "runtime.duckdb"))
+
+    app.state.dashboard_controls.is_running = True
+    app.state.dashboard_controls.kill_switch.deactivate()
+
+    snapshot = persist_runtime_snapshot(app, note="unit-test")
+
+    assert snapshot is not None
+    assert snapshot.note == "unit-test"
+
+    latest = app.state.runtime_state_repository.latest()
+    assert latest is not None
+    assert latest.note == "unit-test"
+    assert latest.is_running is True
+
+
+@pytest.mark.asyncio
+async def test_restore_runtime_state_applies_snapshot(tmp_path) -> None:
+    app = create_app(Settings(_env_file=None, DUCKDB_PATH=tmp_path / "restore.duckdb"))
+    app.state.runtime_state_repository.insert(
+        RuntimeStateRecord(
+            snapshot_at=datetime.now(UTC),
+            is_running=False,
+            kill_switch_active=True,
+            kill_switch_reason="manual-stop",
+            open_trade_count=0,
+            last_known_balances={"USD": 100.0},
+            note="seed",
+        )
+    )
+
+    report = await restore_runtime_state(app)
+
+    assert report.restored_from_snapshot is True
+    assert app.state.dashboard_controls.is_running is False
+    assert app.state.dashboard_controls.kill_switch.is_active is True
+    assert app.state.dashboard_controls.kill_switch.reason == "manual-stop"
+
+
+@pytest.mark.asyncio
+async def test_restore_runtime_state_enables_restart_guard_for_open_trades(tmp_path) -> None:
+    app = create_app(Settings(_env_file=None, DUCKDB_PATH=tmp_path / "open-trades.duckdb"))
+
+    with app.state.store.connect() as conn:
+        conn.execute(
+            """
+            INSERT INTO trades (
+                trade_ref,
+                started_at,
+                finished_at,
+                status,
+                realized_pnl,
+                estimated_pnl,
+                capital_used,
+                cycle,
+                leg_count
+            ) VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?)
+            """,
+            [
+                "open-trade-1",
+                datetime.now(UTC),
+                None,
+                "open",
+                None,
+                1.0,
+                100.0,
+                "USD->BTC->ETH->USD",
+                3,
+            ],
+        )
+
+    report = await restore_runtime_state(app)
+
+    assert report.open_trades_detected == 1
+    assert report.restart_guard_active is True
+    assert app.state.dashboard_controls.is_running is False
+    assert app.state.dashboard_controls.kill_switch.is_active is True
+    assert app.state.dashboard_controls.kill_switch.reason == "recovery_open_trades_detected"
+
+
+@pytest.mark.asyncio
+async def test_graceful_shutdown_drains_workers_and_persists_snapshot(tmp_path) -> None:
+    app = create_app(Settings(_env_file=None, DUCKDB_PATH=tmp_path / "shutdown.duckdb"))
+    worker = _FakeWorker()
+    app.state.background_workers = [worker]
+    app.state.dashboard_controls.is_running = True
+
+    await graceful_shutdown(app)
+
+    assert worker.stopped is True
+    assert app.state.dashboard_controls.is_running is False
+    latest = app.state.runtime_state_repository.latest()
+    assert latest is not None
+    assert latest.note == "graceful_shutdown"
+
+
+@pytest.mark.asyncio
+async def test_restore_runtime_state_calls_startup_reconciler(tmp_path) -> None:
+    app = create_app(Settings(_env_file=None, DUCKDB_PATH=tmp_path / "reconciler.duckdb"))
+    reconciler = _FakeStartupReconciler()
+    app.state.startup_reconciler = reconciler
+
+    await restore_runtime_state(app)
+
+    assert reconciler.called is True

tests/unit/test_settings_validation.py

@@ -0,0 +1,51 @@
+import pytest
+from pydantic import ValidationError
+
+from arbitrade.config.settings import Settings
+
+
+def test_dashboard_auth_requires_both_fields() -> None:
+    with pytest.raises(ValidationError):
+        Settings(_env_file=None, DASHBOARD_AUTH_USERNAME="admin")
+
+
+def test_kraken_api_auth_requires_key_and_secret() -> None:
+    with pytest.raises(ValidationError):
+        Settings(_env_file=None, KRAKEN_API_KEY="key-only")
+
+
+def test_kraken_permissions_require_query_and_trade() -> None:
+    with pytest.raises(ValidationError):
+        Settings(
+            _env_file=None,
+            KRAKEN_API_KEY="k",
+            KRAKEN_API_SECRET="s",
+            KRAKEN_API_KEY_PERMISSIONS="query",
+        )
+
+
+def test_kraken_permissions_forbid_withdrawal_scope() -> None:
+    with pytest.raises(ValidationError):
+        Settings(
+            _env_file=None,
+            KRAKEN_API_KEY="k",
+            KRAKEN_API_SECRET="s",
+            KRAKEN_API_KEY_PERMISSIONS="query,trade,withdraw",
+        )
+
+
+def test_alert_min_severity_is_validated() -> None:
+    with pytest.raises(ValidationError):
+        Settings(_env_file=None, ALERT_MIN_SEVERITY="nope")
+
+
+def test_valid_security_configuration_passes() -> None:
+    settings = Settings(
+        _env_file=None,
+        KRAKEN_API_KEY="k",
+        KRAKEN_API_SECRET="s",
+        KRAKEN_API_KEY_PERMISSIONS="query,trade",
+        ALERT_MIN_SEVERITY="warning",
+    )
+
+    assert settings.kraken_api_key_permissions == "query,trade"

tests/unit/test_stop_conditions.py

@@ -1,10 +1,38 @@
 from __future__ import annotations
 
+import asyncio
+from typing import Any
+
 import pytest
 
 from arbitrade.risk.stop_conditions import StopConditionsGuard
 
 
+class _FakeAlertNotifier:
+    def __init__(self) -> None:
+        self.events: list[dict[str, Any]] = []
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                "details": details or {},
+            }
+        )
+        return True
+
+
 def test_stop_conditions_guard_halts_on_source_latency_breach() -> None:
     guard = StopConditionsGuard(max_source_latency_ms=50.0)
 
@@ -55,3 +83,17 @@ def test_stop_conditions_guard_rejects_invalid_configuration() -> None:
 
     with pytest.raises(ValueError, match="max_consecutive_failures"):
         StopConditionsGuard(max_consecutive_failures=0)
+
+
+@pytest.mark.asyncio
+async def test_stop_conditions_guard_emits_alert_on_failure_threshold() -> None:
+    notifier = _FakeAlertNotifier()
+    guard = StopConditionsGuard(max_consecutive_failures=1, alert_notifier=notifier)
+
+    guard.register_failure()
+    await asyncio.sleep(0)
+
+    assert guard.is_halted
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "threshold"
+    assert notifier.events[0]["title"] == "Consecutive failures limit breached"

tests/unit/test_trade_limits.py

@@ -1,10 +1,38 @@
 from __future__ import annotations
 
+import asyncio
+from typing import Any
+
 import pytest
 
 from arbitrade.risk.trade_limits import TradeLimitsGuard
 
 
+class _FakeAlertNotifier:
+    def __init__(self) -> None:
+        self.events: list[dict[str, Any]] = []
+
+    async def notify(
+        self,
+        *,
+        category: str,
+        severity: str,
+        title: str,
+        message: str,
+        details: dict[str, str] | None = None,
+    ) -> bool:
+        self.events.append(
+            {
+                "category": category,
+                "severity": severity,
+                "title": title,
+                "message": message,
+                "details": details or {},
+            }
+        )
+        return True
+
+
 def test_trade_limits_guard_blocks_when_max_concurrent_reached() -> None:
     guard = TradeLimitsGuard(max_concurrent_trades=1)
 
@@ -39,3 +67,18 @@ def test_trade_limits_guard_rejects_invalid_configuration() -> None:
 
     with pytest.raises(ValueError, match="max_exposure_per_asset"):
         TradeLimitsGuard(max_exposure_per_asset=0.0)
+
+
+@pytest.mark.asyncio
+async def test_trade_limits_guard_emits_alert_when_rejecting_trade() -> None:
+    notifier = _FakeAlertNotifier()
+    guard = TradeLimitsGuard(max_concurrent_trades=1, alert_notifier=notifier)
+
+    guard.open_trade({"BTC": 10.0})
+    allowed = guard.is_trade_allowed({"BTC": 1.0})
+    await asyncio.sleep(0)
+
+    assert not allowed
+    assert len(notifier.events) == 1
+    assert notifier.events[0]["category"] == "threshold"
+    assert notifier.events[0]["title"] == "Concurrent trade limit reached"

web/templates/dashboard.html

@@ -60,6 +60,16 @@ head_scripts %}
 >
   {% include "partials/charts.html" %}
 </section>
+
+<section
+  id="audit-shell"
+  hx-get="{{ audit_endpoint }}"
+  hx-target="this"
+  hx-trigger="load, every 20s"
+  hx-swap="outerHTML"
+>
+  {% include "partials/audit.html" %}
+</section>
 {% endblock %} {% block scripts %}
 <script>
   window.arbitradeRenderCharts = (payload) => {

web/templates/partials/audit.html

@@ -0,0 +1,37 @@
+<div id="audit-panel" class="panel" style="margin-top: 16px">
+  <div class="label">Audit Trail</div>
+  <div class="meta">Generated {{ generated_at }}</div>
+
+  <div style="overflow-x: auto; margin-top: 12px">
+    <table style="width: 100%; border-collapse: collapse; font-size: 0.9rem">
+      <thead>
+        <tr>
+          <th style="text-align: left; padding: 8px">Time</th>
+          <th style="text-align: left; padding: 8px">Actor</th>
+          <th style="text-align: left; padding: 8px">Event</th>
+          <th style="text-align: left; padding: 8px">Decision</th>
+          <th style="text-align: left; padding: 8px">Payload</th>
+          <th style="text-align: left; padding: 8px">Correlation</th>
+        </tr>
+      </thead>
+      <tbody>
+        {% if entries %}
+        {% for entry in entries %}
+        <tr>
+          <td style="padding: 8px; color: #9fb2d0">{{ entry.occurred_at }}</td>
+          <td style="padding: 8px">{{ entry.actor }}</td>
+          <td style="padding: 8px">{{ entry.event_type }}</td>
+          <td style="padding: 8px">{{ entry.decision }}</td>
+          <td style="padding: 8px; color: #9fb2d0">{{ entry.payload }}</td>
+          <td style="padding: 8px; color: #9fb2d0">{{ entry.correlation_id }}</td>
+        </tr>
+        {% endfor %}
+        {% else %}
+        <tr>
+          <td colspan="6" style="padding: 8px; color: #9fb2d0">No audit entries yet.</td>
+        </tr>
+        {% endif %}
+      </tbody>
+    </table>
+  </div>
+</div>

web/templates/partials/controls.html

@@ -17,6 +17,22 @@
       <div class="meta">Max trade capital: {{ max_trade_capital_usd }}</div>
       <div class="meta">Max concurrent trades: {{ max_concurrent_trades }}</div>
     </article>
+    <article class="card">
+      <div class="label">Alerting</div>
+      <div class="meta">Status: {{ alerts_enabled }}</div>
+      <div class="meta">Channels: {{ alerts_channels }}</div>
+      <div class="meta">Min severity: {{ alerts_min_severity }}</div>
+      <div class="meta">Dedup window: {{ alerts_dedup_seconds }}s</div>
+      <div class="meta">Last result: {{ alerts_last_result }}</div>
+      <div class="meta">Last attempted: {{ alerts_last_attempted_at }}</div>
+      <div class="meta">Last success: {{ alerts_last_success_at }}</div>
+      <div class="meta">Last event: {{ alerts_last_event_title }}</div>
+      <div class="meta">Last error: {{ alerts_last_error }}</div>
+      {% if alerts_last_channel_results %} {% for item in
+      alerts_last_channel_results %}
+      <div class="meta">{{ item }}</div>
+      {% endfor %} {% endif %}
+    </article>
   </div>
 
   <div