diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..36e674b
--- /dev/null
+++ b/.env.example
@@ -0,0 +1,20 @@
+DATABASE_URL=sqlite+aiosqlite:///./plm_lottery.db
+
+ELECTRUM_HOST=santantonio.sytes.net
+ELECTRUM_PORT=50002
+ELECTRUM_USE_SSL=true
+
+# Fernet key protecting the master xprv at rest. Generate with:
+#   python -c "from cryptography.fernet import Fernet; print(Fernet.generate_key().decode())"
+XPRV_ENCRYPTION_KEY=
+MASTER_KEY_PATH=./master.xprv.enc
+
+# Random secret for JWT session signing. Generate with:
+#   python -c "import secrets; print(secrets.token_urlsafe(32))"
+JWT_SECRET=
+
+# Bearer token required on the admin endpoints (X-Admin-Token header). Generate with:
+#   python -c "import secrets; print(secrets.token_urlsafe(32))"
+ADMIN_TOKEN=
+
+ROUND_DURATION_SECONDS=600
diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..ac30ea9
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,8 @@
+.venv/
+__pycache__/
+*.pyc
+.env
+*.db
+master.xprv.enc
+.pytest_cache/
+*.egg-info/
diff --git a/alembic.ini b/alembic.ini
new file mode 100644
index 0000000..6a15082
--- /dev/null
+++ b/alembic.ini
@@ -0,0 +1,149 @@
+# A generic, single database configuration.
+
+[alembic]
+# path to migration scripts.
+# this is typically a path given in POSIX (e.g. forward slashes)
+# format, relative to the token %(here)s which refers to the location of this
+# ini file
+script_location = %(here)s/migrations
+
+# template used to generate migration file names; The default value is %%(rev)s_%%(slug)s
+# Uncomment the line below if you want the files to be prepended with date and time
+# see https://alembic.sqlalchemy.org/en/latest/tutorial.html#editing-the-ini-file
+# for all available tokens
+# file_template = %%(year)d_%%(month).2d_%%(day).2d_%%(hour).2d%%(minute).2d-%%(rev)s_%%(slug)s
+# Or organize into date-based subdirectories (requires recursive_version_locations = true)
+# file_template = %%(year)d/%%(month).2d/%%(day).2d_%%(hour).2d%%(minute).2d_%%(second).2d_%%(rev)s_%%(slug)s
+
+# sys.path path, will be prepended to sys.path if present.
+# defaults to the current working directory.  for multiple paths, the path separator
+# is defined by "path_separator" below.
+prepend_sys_path = .
+
+# timezone to use when rendering the date within the migration file
+# as well as the filename.
+# If specified, requires the tzdata library which can be installed by adding
+# `alembic[tz]` to the pip requirements.
+# string value is passed to ZoneInfo()
+# leave blank for localtime
+# timezone =
+
+# max length of characters to apply to the "slug" field
+# truncate_slug_length = 40
+
+# set to 'true' to run the environment during
+# the 'revision' command, regardless of autogenerate
+# revision_environment = false
+
+# set to 'true' to allow .pyc and .pyo files without
+# a source .py file to be detected as revisions in the
+# versions/ directory
+# sourceless = false
+
+# version location specification; This defaults
+# to <script_location>/versions.  When using multiple version
+# directories, initial revisions must be specified with --version-path.
+# The path separator used here should be the separator specified by "path_separator"
+# below.
+# version_locations = %(here)s/bar:%(here)s/bat:%(here)s/alembic/versions
+
+# path_separator; This indicates what character is used to split lists of file
+# paths, including version_locations and prepend_sys_path within configparser
+# files such as alembic.ini.
+# The default rendered in new alembic.ini files is "os", which uses os.pathsep
+# to provide os-dependent path splitting.
+#
+# Note that in order to support legacy alembic.ini files, this default does NOT
+# take place if path_separator is not present in alembic.ini.  If this
+# option is omitted entirely, fallback logic is as follows:
+#
+# 1. Parsing of the version_locations option falls back to using the legacy
+#    "version_path_separator" key, which if absent then falls back to the legacy
+#    behavior of splitting on spaces and/or commas.
+# 2. Parsing of the prepend_sys_path option falls back to the legacy
+#    behavior of splitting on spaces, commas, or colons.
+#
+# Valid values for path_separator are:
+#
+# path_separator = :
+# path_separator = ;
+# path_separator = space
+# path_separator = newline
+#
+# Use os.pathsep. Default configuration used for new projects.
+path_separator = os
+
+
+# set to 'true' to search source files recursively
+# in each "version_locations" directory
+# new in Alembic version 1.10
+# recursive_version_locations = false
+
+# the output encoding used when revision files
+# are written from script.py.mako
+# output_encoding = utf-8
+
+# database URL.  This is consumed by the user-maintained env.py script only.
+# other means of configuring database URLs may be customized within the env.py
+# file.
+sqlalchemy.url = driver://user:pass@localhost/dbname
+
+
+[post_write_hooks]
+# post_write_hooks defines scripts or Python functions that are run
+# on newly generated revision scripts.  See the documentation for further
+# detail and examples
+
+# format using "black" - use the console_scripts runner, against the "black" entrypoint
+# hooks = black
+# black.type = console_scripts
+# black.entrypoint = black
+# black.options = -l 79 REVISION_SCRIPT_FILENAME
+
+# lint with attempts to fix using "ruff" - use the module runner, against the "ruff" module
+# hooks = ruff
+# ruff.type = module
+# ruff.module = ruff
+# ruff.options = check --fix REVISION_SCRIPT_FILENAME
+
+# Alternatively, use the exec runner to execute a binary found on your PATH
+# hooks = ruff
+# ruff.type = exec
+# ruff.executable = ruff
+# ruff.options = check --fix REVISION_SCRIPT_FILENAME
+
+# Logging configuration.  This is also consumed by the user-maintained
+# env.py script only.
+[loggers]
+keys = root,sqlalchemy,alembic
+
+[handlers]
+keys = console
+
+[formatters]
+keys = generic
+
+[logger_root]
+level = WARNING
+handlers = console
+qualname =
+
+[logger_sqlalchemy]
+level = WARNING
+handlers =
+qualname = sqlalchemy.engine
+
+[logger_alembic]
+level = INFO
+handlers =
+qualname = alembic
+
+[handler_console]
+class = StreamHandler
+args = (sys.stderr,)
+level = NOTSET
+formatter = generic
+
+[formatter_generic]
+format = %(levelname)-5.5s [%(name)s] %(message)s
+datefmt = %H:%M:%S
diff --git a/app/__init__.py b/app/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/__init__.py b/app/api/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/routes/__init__.py b/app/api/routes/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/config.py b/app/config.py
new file mode 100644
index 0000000..f1bbf52
--- /dev/null
+++ b/app/config.py
@@ -0,0 +1,29 @@
+from pydantic_settings import BaseSettings, SettingsConfigDict
+
+
+class Settings(BaseSettings):
+    model_config = SettingsConfigDict(env_file=".env", extra="ignore")
+
+    database_url: str = "sqlite+aiosqlite:///./plm_lottery.db"
+
+    electrum_host: str = "santantonio.sytes.net"
+    electrum_port: int = 50002
+    electrum_use_ssl: bool = True
+
+    xprv_encryption_key: str = ""
+    master_key_path: str = "./master.xprv.enc"
+    jwt_secret: str = ""
+    jwt_algorithm: str = "HS256"
+    jwt_expire_minutes: int = 60 * 24
+    admin_token: str = ""
+
+    round_duration_seconds: int = 600
+
+    bet_amount_sats: int = 10 * 100_000_000
+    min_amount_sats: int = 1 * 100_000_000
+    confirmations_required: int = 1
+    fee_rate_sat_vb: int = 1
+    rbf_timeout_seconds: int = 900
+
+
+settings = Settings()
diff --git a/app/db/__init__.py b/app/db/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/base.py b/app/db/base.py
new file mode 100644
index 0000000..cac5738
--- /dev/null
+++ b/app/db/base.py
@@ -0,0 +1,11 @@
+from sqlalchemy.ext.asyncio import async_sessionmaker, create_async_engine
+from sqlalchemy.orm import DeclarativeBase
+
+from app.config import settings
+
+engine = create_async_engine(settings.database_url)
+AsyncSessionLocal = async_sessionmaker(engine, expire_on_commit=False)
+
+
+class Base(DeclarativeBase):
+    pass
diff --git a/app/db/models.py b/app/db/models.py
new file mode 100644
index 0000000..12790ba
--- /dev/null
+++ b/app/db/models.py
@@ -0,0 +1,131 @@
+from datetime import datetime, timezone
+
+from sqlalchemy import BigInteger, ForeignKey, String, UniqueConstraint
+from sqlalchemy.orm import Mapped, mapped_column
+
+from app.db.base import Base
+
+
+def utcnow() -> datetime:
+    return datetime.now(timezone.utc)
+
+
+class User(Base):
+    __tablename__ = "users"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    username: Mapped[str] = mapped_column(String(64), unique=True, index=True)
+    password_hash: Mapped[str] = mapped_column(String(256))
+    derivation_index: Mapped[int] = mapped_column(unique=True)
+    address: Mapped[str] = mapped_column(String(128), unique=True)
+    # Read cache only; must always be written in the same transaction as the
+    # utxo_events rows it summarizes. Source of truth is utxo_events.
+    cached_balance_sats: Mapped[int] = mapped_column(BigInteger, default=0)
+    created_at: Mapped[datetime] = mapped_column(default=utcnow)
+
+
+class UtxoEvent(Base):
+    __tablename__ = "utxo_events"
+    __table_args__ = (UniqueConstraint("txid", "vout"),)
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    user_id: Mapped[int] = mapped_column(ForeignKey("users.id"), index=True)
+    txid: Mapped[str] = mapped_column(String(64))
+    vout: Mapped[int]
+    amount_sats: Mapped[int] = mapped_column(BigInteger)
+    confirmed_height: Mapped[int]
+    confirmed_at: Mapped[datetime] = mapped_column(default=utcnow)
+    # Set once this UTXO is consumed by an outgoing bet/withdrawal build.
+    spent_txid: Mapped[str | None] = mapped_column(String(64), default=None)
+
+
+class Round(Base):
+    __tablename__ = "rounds"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    status: Mapped[str] = mapped_column(String(16), default="open")
+    opened_at: Mapped[datetime] = mapped_column(default=utcnow)
+    closed_at: Mapped[datetime | None] = mapped_column(default=None)
+    draw_block_height: Mapped[int | None] = mapped_column(default=None)
+    draw_block_hash: Mapped[str | None] = mapped_column(String(64), default=None)
+    seed_int: Mapped[str | None] = mapped_column(String(128), default=None)
+    winner_user_id: Mapped[int | None] = mapped_column(ForeignKey("users.id"), default=None)
+    pool_amount_sats: Mapped[int | None] = mapped_column(BigInteger, default=None)
+    winner_amount_sats: Mapped[int | None] = mapped_column(BigInteger, default=None)
+    fee_amount_sats: Mapped[int | None] = mapped_column(BigInteger, default=None)
+    payout_txid: Mapped[str | None] = mapped_column(String(64), default=None)
+
+
+class RoundParticipant(Base):
+    __tablename__ = "round_participants"
+    __table_args__ = (UniqueConstraint("round_id", "user_id"),)
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    round_id: Mapped[int] = mapped_column(ForeignKey("rounds.id"), index=True)
+    user_id: Mapped[int] = mapped_column(ForeignKey("users.id"), index=True)
+    bet_amount_sats: Mapped[int] = mapped_column(BigInteger)
+    bet_txid: Mapped[str] = mapped_column(String(64))
+    # Ordering / tie-break field per spec: broadcast time, not confirmation time.
+    broadcast_at: Mapped[datetime] = mapped_column(default=utcnow)
+    confirmed_at: Mapped[datetime | None] = mapped_column(default=None)
+    status: Mapped[str] = mapped_column(String(16), default="broadcast")
+
+
+class RoundConfig(Base):
+    """Single-row operational config, DB-backed so it's editable without a redeploy.
+
+    round_duration is intentionally NOT here: it stays env-var-driven per spec.
+    Don't move it here without an explicit decision to change that.
+    """
+
+    __tablename__ = "round_config"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    fee_address: Mapped[str] = mapped_column(String(128))
+    bet_amount_sats: Mapped[int] = mapped_column(BigInteger)
+    updated_at: Mapped[datetime] = mapped_column(default=utcnow, onupdate=utcnow)
+
+
+class PendingTransaction(Base):
+    """Single source of truth for the RBF timeout->bump->rebroadcast loop."""
+
+    __tablename__ = "pending_transactions"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    kind: Mapped[str] = mapped_column(String(16))  # bet | payout | withdrawal
+    round_id: Mapped[int | None] = mapped_column(ForeignKey("rounds.id"), default=None)
+    withdrawal_id: Mapped[int | None] = mapped_column(ForeignKey("withdrawals.id"), default=None)
+    user_id: Mapped[int | None] = mapped_column(ForeignKey("users.id"), default=None)
+    current_txid: Mapped[str] = mapped_column(String(64))
+    fee_rate_sat_vb: Mapped[int]
+    raw_tx_hex: Mapped[str] = mapped_column(String)
+    broadcast_at: Mapped[datetime] = mapped_column(default=utcnow)
+    status: Mapped[str] = mapped_column(String(16), default="pending")
+    replaced_by_txid: Mapped[str | None] = mapped_column(String(64), default=None)
+    attempt_count: Mapped[int] = mapped_column(default=1)
+    updated_at: Mapped[datetime] = mapped_column(default=utcnow, onupdate=utcnow)
+
+
+class Withdrawal(Base):
+    __tablename__ = "withdrawals"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    user_id: Mapped[int] = mapped_column(ForeignKey("users.id"), index=True)
+    external_address: Mapped[str] = mapped_column(String(128))
+    amount_requested_sats: Mapped[int] = mapped_column(BigInteger)
+    amount_sent_sats: Mapped[int | None] = mapped_column(BigInteger, default=None)
+    txid: Mapped[str | None] = mapped_column(String(64), default=None)
+    status: Mapped[str] = mapped_column(String(16), default="pending")
+    created_at: Mapped[datetime] = mapped_column(default=utcnow)
+    confirmed_at: Mapped[datetime | None] = mapped_column(default=None)
+
+
+class AuditLog(Base):
+    __tablename__ = "audit_log"
+
+    id: Mapped[int] = mapped_column(primary_key=True)
+    event_type: Mapped[str] = mapped_column(String(32))
+    payload_json: Mapped[str] = mapped_column(String)
+    user_id: Mapped[int | None] = mapped_column(ForeignKey("users.id"), default=None)
+    round_id: Mapped[int | None] = mapped_column(ForeignKey("rounds.id"), default=None)
+    created_at: Mapped[datetime] = mapped_column(default=utcnow)
diff --git a/app/db/session.py b/app/db/session.py
new file mode 100644
index 0000000..46a5245
--- /dev/null
+++ b/app/db/session.py
@@ -0,0 +1,10 @@
+from collections.abc import AsyncGenerator
+
+from sqlalchemy.ext.asyncio import AsyncSession
+
+from app.db.base import AsyncSessionLocal
+
+
+async def get_session() -> AsyncGenerator[AsyncSession, None]:
+    async with AsyncSessionLocal() as session:
+        yield session
diff --git a/migrations/README b/migrations/README
new file mode 100644
index 0000000..e0d0858
--- /dev/null
+++ b/migrations/README
@@ -0,0 +1 @@
+Generic single-database configuration with an async dbapi.
\ No newline at end of file
diff --git a/migrations/env.py b/migrations/env.py
new file mode 100644
index 0000000..0df7a1f
--- /dev/null
+++ b/migrations/env.py
@@ -0,0 +1,85 @@
+import asyncio
+from logging.config import fileConfig
+
+from sqlalchemy import pool
+from sqlalchemy.engine import Connection
+from sqlalchemy.ext.asyncio import async_engine_from_config
+
+from alembic import context
+
+# this is the Alembic Config object, which provides
+# access to the values within the .ini file in use.
+config = context.config
+
+# Interpret the config file for Python logging.
+# This line sets up loggers basically.
+if config.config_file_name is not None:
+    fileConfig(config.config_file_name)
+
+from app.config import settings
+from app.db.base import Base
+from app.db import models  # noqa: F401  (registers models on Base.metadata)
+
+target_metadata = Base.metadata
+config.set_main_option("sqlalchemy.url", settings.database_url)
+
+
+def run_migrations_offline() -> None:
+    """Run migrations in 'offline' mode.
+
+    This configures the context with just a URL
+    and not an Engine, though an Engine is acceptable
+    here as well.  By skipping the Engine creation
+    we don't even need a DBAPI to be available.
+
+    Calls to context.execute() here emit the given string to the
+    script output.
+
+    """
+    url = config.get_main_option("sqlalchemy.url")
+    context.configure(
+        url=url,
+        target_metadata=target_metadata,
+        literal_binds=True,
+        dialect_opts={"paramstyle": "named"},
+    )
+
+    with context.begin_transaction():
+        context.run_migrations()
+
+
+def do_run_migrations(connection: Connection) -> None:
+    context.configure(connection=connection, target_metadata=target_metadata)
+
+    with context.begin_transaction():
+        context.run_migrations()
+
+
+async def run_async_migrations() -> None:
+    """In this scenario we need to create an Engine
+    and associate a connection with the context.
+
+    """
+
+    connectable = async_engine_from_config(
+        config.get_section(config.config_ini_section, {}),
+        prefix="sqlalchemy.",
+        poolclass=pool.NullPool,
+    )
+
+    async with connectable.connect() as connection:
+        await connection.run_sync(do_run_migrations)
+
+    await connectable.dispose()
+
+
+def run_migrations_online() -> None:
+    """Run migrations in 'online' mode."""
+
+    asyncio.run(run_async_migrations())
+
+
+if context.is_offline_mode():
+    run_migrations_offline()
+else:
+    run_migrations_online()
diff --git a/migrations/script.py.mako b/migrations/script.py.mako
new file mode 100644
index 0000000..1101630
--- /dev/null
+++ b/migrations/script.py.mako
@@ -0,0 +1,28 @@
+"""${message}
+
+Revision ID: ${up_revision}
+Revises: ${down_revision | comma,n}
+Create Date: ${create_date}
+
+"""
+from typing import Sequence, Union
+
+from alembic import op
+import sqlalchemy as sa
+${imports if imports else ""}
+
+# revision identifiers, used by Alembic.
+revision: str = ${repr(up_revision)}
+down_revision: Union[str, Sequence[str], None] = ${repr(down_revision)}
+branch_labels: Union[str, Sequence[str], None] = ${repr(branch_labels)}
+depends_on: Union[str, Sequence[str], None] = ${repr(depends_on)}
+
+
+def upgrade() -> None:
+    """Upgrade schema."""
+    ${upgrades if upgrades else "pass"}
+
+
+def downgrade() -> None:
+    """Downgrade schema."""
+    ${downgrades if downgrades else "pass"}
diff --git a/migrations/versions/274efdcbfbcc_initial_schema.py b/migrations/versions/274efdcbfbcc_initial_schema.py
new file mode 100644
index 0000000..0a48d2e
--- /dev/null
+++ b/migrations/versions/274efdcbfbcc_initial_schema.py
@@ -0,0 +1,153 @@
+"""initial schema
+
+Revision ID: 274efdcbfbcc
+Revises: 
+Create Date: 2026-07-20 22:11:47.766165
+
+"""
+from typing import Sequence, Union
+
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision: str = '274efdcbfbcc'
+down_revision: Union[str, Sequence[str], None] = None
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def upgrade() -> None:
+    """Upgrade schema."""
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.create_table('round_config',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('fee_address', sa.String(length=128), nullable=False),
+    sa.Column('bet_amount_sats', sa.BigInteger(), nullable=False),
+    sa.Column('updated_at', sa.DateTime(), nullable=False),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_table('users',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('username', sa.String(length=64), nullable=False),
+    sa.Column('password_hash', sa.String(length=256), nullable=False),
+    sa.Column('derivation_index', sa.Integer(), nullable=False),
+    sa.Column('address', sa.String(length=128), nullable=False),
+    sa.Column('cached_balance_sats', sa.BigInteger(), nullable=False),
+    sa.Column('created_at', sa.DateTime(), nullable=False),
+    sa.PrimaryKeyConstraint('id'),
+    sa.UniqueConstraint('address'),
+    sa.UniqueConstraint('derivation_index')
+    )
+    op.create_index(op.f('ix_users_username'), 'users', ['username'], unique=True)
+    op.create_table('rounds',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('status', sa.String(length=16), nullable=False),
+    sa.Column('opened_at', sa.DateTime(), nullable=False),
+    sa.Column('closed_at', sa.DateTime(), nullable=True),
+    sa.Column('draw_block_height', sa.Integer(), nullable=True),
+    sa.Column('draw_block_hash', sa.String(length=64), nullable=True),
+    sa.Column('seed_int', sa.String(length=128), nullable=True),
+    sa.Column('winner_user_id', sa.Integer(), nullable=True),
+    sa.Column('pool_amount_sats', sa.BigInteger(), nullable=True),
+    sa.Column('winner_amount_sats', sa.BigInteger(), nullable=True),
+    sa.Column('fee_amount_sats', sa.BigInteger(), nullable=True),
+    sa.Column('payout_txid', sa.String(length=64), nullable=True),
+    sa.ForeignKeyConstraint(['winner_user_id'], ['users.id'], ),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_table('utxo_events',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('user_id', sa.Integer(), nullable=False),
+    sa.Column('txid', sa.String(length=64), nullable=False),
+    sa.Column('vout', sa.Integer(), nullable=False),
+    sa.Column('amount_sats', sa.BigInteger(), nullable=False),
+    sa.Column('confirmed_height', sa.Integer(), nullable=False),
+    sa.Column('confirmed_at', sa.DateTime(), nullable=False),
+    sa.Column('spent_txid', sa.String(length=64), nullable=True),
+    sa.ForeignKeyConstraint(['user_id'], ['users.id'], ),
+    sa.PrimaryKeyConstraint('id'),
+    sa.UniqueConstraint('txid', 'vout')
+    )
+    op.create_index(op.f('ix_utxo_events_user_id'), 'utxo_events', ['user_id'], unique=False)
+    op.create_table('withdrawals',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('user_id', sa.Integer(), nullable=False),
+    sa.Column('external_address', sa.String(length=128), nullable=False),
+    sa.Column('amount_requested_sats', sa.BigInteger(), nullable=False),
+    sa.Column('amount_sent_sats', sa.BigInteger(), nullable=True),
+    sa.Column('txid', sa.String(length=64), nullable=True),
+    sa.Column('status', sa.String(length=16), nullable=False),
+    sa.Column('created_at', sa.DateTime(), nullable=False),
+    sa.Column('confirmed_at', sa.DateTime(), nullable=True),
+    sa.ForeignKeyConstraint(['user_id'], ['users.id'], ),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_withdrawals_user_id'), 'withdrawals', ['user_id'], unique=False)
+    op.create_table('audit_log',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('event_type', sa.String(length=32), nullable=False),
+    sa.Column('payload_json', sa.String(), nullable=False),
+    sa.Column('user_id', sa.Integer(), nullable=True),
+    sa.Column('round_id', sa.Integer(), nullable=True),
+    sa.Column('created_at', sa.DateTime(), nullable=False),
+    sa.ForeignKeyConstraint(['round_id'], ['rounds.id'], ),
+    sa.ForeignKeyConstraint(['user_id'], ['users.id'], ),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_table('pending_transactions',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('kind', sa.String(length=16), nullable=False),
+    sa.Column('round_id', sa.Integer(), nullable=True),
+    sa.Column('withdrawal_id', sa.Integer(), nullable=True),
+    sa.Column('user_id', sa.Integer(), nullable=True),
+    sa.Column('current_txid', sa.String(length=64), nullable=False),
+    sa.Column('fee_rate_sat_vb', sa.Integer(), nullable=False),
+    sa.Column('raw_tx_hex', sa.String(), nullable=False),
+    sa.Column('broadcast_at', sa.DateTime(), nullable=False),
+    sa.Column('status', sa.String(length=16), nullable=False),
+    sa.Column('replaced_by_txid', sa.String(length=64), nullable=True),
+    sa.Column('attempt_count', sa.Integer(), nullable=False),
+    sa.Column('updated_at', sa.DateTime(), nullable=False),
+    sa.ForeignKeyConstraint(['round_id'], ['rounds.id'], ),
+    sa.ForeignKeyConstraint(['user_id'], ['users.id'], ),
+    sa.ForeignKeyConstraint(['withdrawal_id'], ['withdrawals.id'], ),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_table('round_participants',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('round_id', sa.Integer(), nullable=False),
+    sa.Column('user_id', sa.Integer(), nullable=False),
+    sa.Column('bet_amount_sats', sa.BigInteger(), nullable=False),
+    sa.Column('bet_txid', sa.String(length=64), nullable=False),
+    sa.Column('broadcast_at', sa.DateTime(), nullable=False),
+    sa.Column('confirmed_at', sa.DateTime(), nullable=True),
+    sa.Column('status', sa.String(length=16), nullable=False),
+    sa.ForeignKeyConstraint(['round_id'], ['rounds.id'], ),
+    sa.ForeignKeyConstraint(['user_id'], ['users.id'], ),
+    sa.PrimaryKeyConstraint('id'),
+    sa.UniqueConstraint('round_id', 'user_id')
+    )
+    op.create_index(op.f('ix_round_participants_round_id'), 'round_participants', ['round_id'], unique=False)
+    op.create_index(op.f('ix_round_participants_user_id'), 'round_participants', ['user_id'], unique=False)
+    # ### end Alembic commands ###
+
+
+def downgrade() -> None:
+    """Downgrade schema."""
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.drop_index(op.f('ix_round_participants_user_id'), table_name='round_participants')
+    op.drop_index(op.f('ix_round_participants_round_id'), table_name='round_participants')
+    op.drop_table('round_participants')
+    op.drop_table('pending_transactions')
+    op.drop_table('audit_log')
+    op.drop_index(op.f('ix_withdrawals_user_id'), table_name='withdrawals')
+    op.drop_table('withdrawals')
+    op.drop_index(op.f('ix_utxo_events_user_id'), table_name='utxo_events')
+    op.drop_table('utxo_events')
+    op.drop_table('rounds')
+    op.drop_index(op.f('ix_users_username'), table_name='users')
+    op.drop_table('users')
+    op.drop_table('round_config')
+    # ### end Alembic commands ###
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..2fc3b83
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,30 @@
+[project]
+name = "plm-lottery"
+version = "0.1.0"
+requires-python = ">=3.12"
+dependencies = [
+    "fastapi>=0.115",
+    "uvicorn[standard]>=0.32",
+    "sqlalchemy>=2.0",
+    "aiosqlite>=0.20",
+    "alembic>=1.13",
+    "pydantic-settings>=2.6",
+    "argon2-cffi>=23.1",
+    "pyjwt>=2.7",
+    "cryptography>=43.0",
+    "embit>=0.7",
+]
+
+[project.optional-dependencies]
+dev = [
+    "pytest>=8.3",
+    "pytest-asyncio>=0.24",
+    "httpx>=0.27",
+]
+
+[tool.pytest.ini_options]
+asyncio_mode = "auto"
+testpaths = ["tests"]
+
+[tool.setuptools.packages.find]
+include = ["app*"]
diff --git a/tests/__init__.py b/tests/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/integration/__init__.py b/tests/integration/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/unit/__init__.py b/tests/unit/__init__.py
new file mode 100644
index 0000000..e69de29