diff --git a/.env.example b/.env.example
index 7d17ead..30d02cc 100644
--- a/.env.example
+++ b/.env.example
@@ -23,7 +23,7 @@ GEMINI_API_KEY=xxx
 AI_MAX_TOKENS=1024
 
 # AI creativity/randomness (0.0 = deterministic, 2.0 = very creative)
-AI_TEMPERATURE=0.7
+AI_TEMPERATURE=1
 
 # ===========================================
 # Bot Identity & Personality
@@ -62,6 +62,8 @@ CONVERSATION_TIMEOUT_MINUTES=60
 
 # Password for PostgreSQL when using docker-compose
 POSTGRES_PASSWORD=daemon
+POSTGRES_USER=daemon
+POSTGRES_DB=daemon_boyfriend
 
 # Echo SQL statements for debugging (true/false)
 DATABASE_ECHO=false
diff --git a/CLAUDE.md b/CLAUDE.md
index c00eca7..5e680d0 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -8,6 +8,9 @@ This file provides guidance to Claude Code (claude.ai/code) when working with co
 # Install dependencies
 pip install -r requirements.txt
 
+# Install in development mode (required for testing)
+pip install -e .
+
 # Run the bot (requires .env with DISCORD_TOKEN and AI provider key)
 python -m daemon_boyfriend
 
@@ -21,9 +24,33 @@ alembic upgrade head
 python -m py_compile src/daemon_boyfriend/**/*.py
 ```
 
+## Testing
+
+```bash
+# Install dev dependencies
+pip install -e ".[dev]"
+
+# Run all tests
+python -m pytest tests/ -v
+
+# Run tests with coverage
+python -m pytest tests/ --cov=daemon_boyfriend --cov-report=term-missing
+
+# Run specific test file
+python -m pytest tests/test_models.py -v
+
+# Run specific test class
+python -m pytest tests/test_services.py::TestMoodService -v
+```
+
+The test suite uses:
+- `pytest` with `pytest-asyncio` for async test support
+- SQLite in-memory database for testing (via `aiosqlite`)
+- Mock fixtures for Discord objects and AI providers in `tests/conftest.py`
+
 ## Architecture
 
-This is a Discord bot that responds to @mentions with AI-generated responses (multi-provider support).
+This is a Discord bot that responds to @mentions with AI-generated responses (multi-provider support). It features a "Living AI" system that gives the bot personality, mood, and relationship tracking.
 
 ### Provider Pattern
 The AI system uses a provider abstraction pattern:
@@ -44,6 +71,7 @@ Cogs are auto-loaded by `bot.py` from the `cogs/` directory.
 ### Database & Memory System
 The bot uses PostgreSQL for persistent memory (optional, falls back to in-memory):
 - `models/` - SQLAlchemy models (User, UserFact, Conversation, Message, Guild, GuildMember)
+- `models/living_ai.py` - Living AI models (BotState, BotOpinion, UserRelationship, etc.)
 - `services/database.py` - Connection pool and async session management
 - `services/user_service.py` - User CRUD, custom names, facts management
 - `services/persistent_conversation.py` - Database-backed conversation history
@@ -55,6 +83,42 @@ Key features:
 - Persistent conversations: Chat history survives restarts
 - Conversation timeout: New conversation starts after 60 minutes of inactivity
 
+### Living AI System
+The bot implements a "Living AI" system with emotional depth and relationship tracking:
+
+#### Services (`services/`)
+- `mood_service.py` - Valence-arousal mood model with time decay
+- `relationship_service.py` - Relationship scoring (stranger to close friend)
+- `fact_extraction_service.py` - Autonomous fact learning from conversations
+- `opinion_service.py` - Bot develops opinions on topics over time
+- `self_awareness_service.py` - Bot statistics and self-reflection
+- `communication_style_service.py` - Learns user communication preferences
+- `proactive_service.py` - Scheduled events (birthdays, follow-ups)
+- `association_service.py` - Cross-user memory associations
+
+#### Models (`models/living_ai.py`)
+- `BotState` - Global mood state and statistics per guild
+- `BotOpinion` - Topic sentiments and preferences
+- `UserRelationship` - Per-user relationship scores and metrics
+- `UserCommunicationStyle` - Learned communication preferences
+- `ScheduledEvent` - Birthdays, follow-ups, reminders
+- `FactAssociation` - Cross-user memory links
+- `MoodHistory` - Mood changes over time
+
+#### Mood System
+Uses a valence-arousal model:
+- Valence: -1 (sad) to +1 (happy)
+- Arousal: -1 (calm) to +1 (excited)
+- Labels: excited, happy, calm, neutral, bored, annoyed, curious
+- Time decay: Mood gradually returns to neutral
+
+#### Relationship Levels
+- Stranger (0-20): Polite, formal
+- Acquaintance (21-40): Friendly but reserved
+- Friend (41-60): Casual, warm
+- Good Friend (61-80): Personal, references past talks
+- Close Friend (81-100): Very casual, inside jokes
+
 ### Configuration
 All config flows through `config.py` using pydantic-settings. The `settings` singleton is created at module load, so env vars must be set before importing.
 
@@ -72,6 +136,8 @@ The bot can search the web for current information via SearXNG:
 - The bot responds only to @mentions via `on_message` listener
 - Web search uses AI to decide when to search, avoiding unnecessary API calls for general knowledge questions
 - User context (custom name + known facts) is included in AI prompts for personalized responses
+- `PortableJSON` type in `models/base.py` allows models to work with both PostgreSQL (JSONB) and SQLite (JSON)
+- `ensure_utc()` helper handles timezone-naive datetimes from SQLite
 
 ## Environment Variables
 
@@ -82,15 +148,44 @@ Optional:
 - `POSTGRES_PASSWORD` - Used by docker-compose for the PostgreSQL container
 - `SEARXNG_URL` - SearXNG instance URL for web search capability
 
-## Memory Commands
+### Living AI Configuration
+- `LIVING_AI_ENABLED` - Master switch for Living AI features (default: true)
+- `MOOD_ENABLED` - Enable mood system (default: true)
+- `RELATIONSHIP_ENABLED` - Enable relationship tracking (default: true)
+- `FACT_EXTRACTION_ENABLED` - Enable autonomous fact extraction (default: true)
+- `FACT_EXTRACTION_RATE` - Probability of extracting facts (default: 0.3)
+- `PROACTIVE_ENABLED` - Enable proactive messages (default: true)
+- `CROSS_USER_ENABLED` - Enable cross-user memory associations (default: false)
+- `OPINION_FORMATION_ENABLED` - Enable bot opinion formation (default: true)
+- `STYLE_LEARNING_ENABLED` - Enable communication style learning (default: true)
+- `MOOD_DECAY_RATE` - How fast mood returns to neutral per hour (default: 0.1)
 
-User commands:
+### Command Toggles
+- `COMMANDS_ENABLED` - Master switch for all commands (default: true)
+- `CMD_RELATIONSHIP_ENABLED` - Enable `!relationship` command
+- `CMD_MOOD_ENABLED` - Enable `!mood` command
+- `CMD_BOTSTATS_ENABLED` - Enable `!botstats` command
+- `CMD_OURHISTORY_ENABLED` - Enable `!ourhistory` command
+- `CMD_BIRTHDAY_ENABLED` - Enable `!birthday` command
+- `CMD_REMEMBER_ENABLED` - Enable `!remember` command
+- `CMD_SETNAME_ENABLED` - Enable `!setname` command
+- `CMD_WHATDOYOUKNOW_ENABLED` - Enable `!whatdoyouknow` command
+- `CMD_FORGETME_ENABLED` - Enable `!forgetme` command
+
+## Commands
+
+### User commands
 - `!setname <name>` - Set your preferred name
 - `!clearname` - Reset to Discord display name
 - `!remember <fact>` - Tell the bot something about you
 - `!whatdoyouknow` - See what the bot remembers about you
 - `!forgetme` - Clear all facts about you
+- `!relationship` - See your relationship level with the bot
+- `!mood` - See the bot's current emotional state
+- `!botstats` - Bot shares its self-awareness statistics
+- `!ourhistory` - See your history with the bot
+- `!birthday <date>` - Set your birthday for the bot to remember
 
-Admin commands:
+### Admin commands
 - `!setusername @user <name>` - Set name for another user
 - `!teachbot @user <fact>` - Add a fact about a user
diff --git a/docker-compose.yml b/docker-compose.yml
index 58a5712..9991ece 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,33 +1,36 @@
 services:
-  daemon-boyfriend:
-    build: .
-    container_name: daemon-boyfriend
-    restart: unless-stopped
-    env_file:
-      - .env
-    environment:
-      - PYTHONUNBUFFERED=1
-      - DATABASE_URL=postgresql+asyncpg://daemon:${POSTGRES_PASSWORD:-daemon}@postgres:5432/daemon_boyfriend
-    depends_on:
-      postgres:
-        condition: service_healthy
+    daemon-boyfriend:
+        build: .
+        container_name: daemon-boyfriend
+        restart: unless-stopped
+        env_file:
+            - .env
+        environment:
+            - PYTHONUNBUFFERED=1
+            - DATABASE_URL=postgresql+asyncpg://daemon:${POSTGRES_PASSWORD:-daemon}@postgres:5432/daemon_boyfriend
+        depends_on:
+            postgres:
+                condition: service_healthy
 
-  postgres:
-    image: postgres:16-alpine
-    container_name: daemon-boyfriend-postgres
-    restart: unless-stopped
-    environment:
-      POSTGRES_USER: daemon
-      POSTGRES_PASSWORD: ${POSTGRES_PASSWORD:-daemon}
-      POSTGRES_DB: daemon_boyfriend
-    volumes:
-      - postgres_data:/var/lib/postgresql/data
-      - ./schema.sql:/docker-entrypoint-initdb.d/schema.sql:ro
-    healthcheck:
-      test: ["CMD-SHELL", "pg_isready -U daemon -d daemon_boyfriend"]
-      interval: 10s
-      timeout: 5s
-      retries: 5
+    postgres:
+        image: postgres:16-alpine
+        container_name: daemon-boyfriend-postgres
+        restart: unless-stopped
+        # optional
+        ports:
+            - "5433:5432"
+        environment:
+            POSTGRES_USER: ${POSTGRES_USER:-daemon}
+            POSTGRES_PASSWORD: ${POSTGRES_PASSWORD:-daemon}
+            POSTGRES_DB: ${POSTGRES_DB:-daemon_boyfriend}
+        volumes:
+            - postgres_data:/var/lib/postgresql/data
+            - ./schema.sql:/docker-entrypoint-initdb.d/schema.sql:ro
+        healthcheck:
+            test: ["CMD-SHELL", "pg_isready -U daemon -d daemon_boyfriend"]
+            interval: 10s
+            timeout: 5s
+            retries: 5
 
 volumes:
-  postgres_data:
+    postgres_data:
diff --git a/project-vision.md b/docs/project-vision.md
similarity index 100%
rename from project-vision.md
rename to docs/project-vision.md
diff --git a/src/daemon_boyfriend/config.py b/src/daemon_boyfriend/config.py
index 4054741..0cec8dd 100644
--- a/src/daemon_boyfriend/config.py
+++ b/src/daemon_boyfriend/config.py
@@ -13,6 +13,7 @@ class Settings(BaseSettings):
         env_file=".env",
         env_file_encoding="utf-8",
         case_sensitive=False,
+        extra="ignore",
     )
 
     # Discord Configuration
diff --git a/src/daemon_boyfriend/models/base.py b/src/daemon_boyfriend/models/base.py
index cf19f41..64cccc8 100644
--- a/src/daemon_boyfriend/models/base.py
+++ b/src/daemon_boyfriend/models/base.py
@@ -2,9 +2,23 @@
 
 from datetime import datetime, timezone
 
-from sqlalchemy import DateTime, MetaData
+from sqlalchemy import JSON, DateTime, MetaData
+from sqlalchemy.dialects.postgresql import JSONB
 from sqlalchemy.ext.asyncio import AsyncAttrs
 from sqlalchemy.orm import DeclarativeBase, Mapped, mapped_column
+from sqlalchemy.types import TypeDecorator
+
+
+class PortableJSON(TypeDecorator):
+    """A JSON type that uses JSONB on PostgreSQL and JSON on other databases."""
+
+    impl = JSON
+    cache_ok = True
+
+    def load_dialect_impl(self, dialect):
+        if dialect.name == "postgresql":
+            return dialect.type_descriptor(JSONB())
+        return dialect.type_descriptor(JSON())
 
 
 def utc_now() -> datetime:
@@ -12,6 +26,19 @@ def utc_now() -> datetime:
     return datetime.now(timezone.utc)
 
 
+def ensure_utc(dt: datetime | None) -> datetime | None:
+    """Ensure a datetime is timezone-aware (UTC).
+
+    SQLite doesn't preserve timezone info, so this function adds UTC
+    timezone to naive datetimes returned from the database.
+    """
+    if dt is None:
+        return None
+    if dt.tzinfo is None:
+        return dt.replace(tzinfo=timezone.utc)
+    return dt
+
+
 # Naming convention for constraints (helps with migrations)
 convention = {
     "ix": "ix_%(column_0_label)s",
diff --git a/src/daemon_boyfriend/models/conversation.py b/src/daemon_boyfriend/models/conversation.py
index 4c23c4e..da3c66d 100644
--- a/src/daemon_boyfriend/models/conversation.py
+++ b/src/daemon_boyfriend/models/conversation.py
@@ -3,10 +3,10 @@
 from datetime import datetime
 from typing import TYPE_CHECKING
 
-from sqlalchemy import ARRAY, BigInteger, Boolean, DateTime, ForeignKey, Integer, String, Text
+from sqlalchemy import BigInteger, Boolean, DateTime, ForeignKey, Integer, String, Text
 from sqlalchemy.orm import Mapped, mapped_column, relationship
 
-from .base import Base, utc_now
+from .base import Base, PortableJSON, utc_now
 
 if TYPE_CHECKING:
     from .user import User
@@ -51,7 +51,7 @@ class Message(Base):
     role: Mapped[str] = mapped_column(String(20))  # user, assistant, system
     content: Mapped[str] = mapped_column(Text)
     has_images: Mapped[bool] = mapped_column(Boolean, default=False)
-    image_urls: Mapped[list[str] | None] = mapped_column(ARRAY(Text), default=None)
+    image_urls: Mapped[list[str] | None] = mapped_column(PortableJSON, default=None)
     token_count: Mapped[int | None] = mapped_column(Integer)
 
     # Relationships
diff --git a/src/daemon_boyfriend/models/guild.py b/src/daemon_boyfriend/models/guild.py
index 84539c4..a48498c 100644
--- a/src/daemon_boyfriend/models/guild.py
+++ b/src/daemon_boyfriend/models/guild.py
@@ -4,19 +4,16 @@ from datetime import datetime
 from typing import TYPE_CHECKING
 
 from sqlalchemy import (
-    ARRAY,
     BigInteger,
     Boolean,
     DateTime,
     ForeignKey,
     String,
-    Text,
     UniqueConstraint,
 )
-from sqlalchemy.dialects.postgresql import JSONB
 from sqlalchemy.orm import Mapped, mapped_column, relationship
 
-from .base import Base, utc_now
+from .base import Base, PortableJSON, utc_now
 
 if TYPE_CHECKING:
     from .user import User
@@ -32,7 +29,7 @@ class Guild(Base):
     name: Mapped[str] = mapped_column(String(255))
     joined_at: Mapped[datetime] = mapped_column(DateTime(timezone=True), default=utc_now)
     is_active: Mapped[bool] = mapped_column(Boolean, default=True)
-    settings: Mapped[dict] = mapped_column(JSONB, default=dict)
+    settings: Mapped[dict] = mapped_column(PortableJSON, default=dict)
 
     # Relationships
     members: Mapped[list["GuildMember"]] = relationship(
@@ -49,7 +46,7 @@ class GuildMember(Base):
     guild_id: Mapped[int] = mapped_column(ForeignKey("guilds.id", ondelete="CASCADE"), index=True)
     user_id: Mapped[int] = mapped_column(ForeignKey("users.id", ondelete="CASCADE"), index=True)
     guild_nickname: Mapped[str | None] = mapped_column(String(255))
-    roles: Mapped[list[str] | None] = mapped_column(ARRAY(Text), default=None)
+    roles: Mapped[list[str] | None] = mapped_column(PortableJSON, default=None)
     joined_guild_at: Mapped[datetime | None] = mapped_column(DateTime(timezone=True), default=None)
 
     # Relationships
diff --git a/src/daemon_boyfriend/models/living_ai.py b/src/daemon_boyfriend/models/living_ai.py
index 7203011..02d482b 100644
--- a/src/daemon_boyfriend/models/living_ai.py
+++ b/src/daemon_boyfriend/models/living_ai.py
@@ -13,10 +13,9 @@ from sqlalchemy import (
     Text,
     UniqueConstraint,
 )
-from sqlalchemy.dialects.postgresql import JSONB
 from sqlalchemy.orm import Mapped, mapped_column, relationship
 
-from .base import Base, utc_now
+from .base import Base, PortableJSON, utc_now
 
 if TYPE_CHECKING:
     from .user import User, UserFact
@@ -42,7 +41,7 @@ class BotState(Base):
     first_activated_at: Mapped[datetime] = mapped_column(DateTime(timezone=True), default=utc_now)
 
     # Bot preferences (evolved over time)
-    preferences: Mapped[dict] = mapped_column(JSONB, default=dict)
+    preferences: Mapped[dict] = mapped_column(PortableJSON, default=dict)
 
 
 class BotOpinion(Base):
@@ -88,7 +87,7 @@ class UserRelationship(Base):
     conversation_depth_avg: Mapped[float] = mapped_column(Float, default=0.0)
 
     # Inside jokes / shared references
-    shared_references: Mapped[dict] = mapped_column(JSONB, default=dict)
+    shared_references: Mapped[dict] = mapped_column(PortableJSON, default=dict)
 
     first_interaction_at: Mapped[datetime] = mapped_column(DateTime(timezone=True), default=utc_now)
     last_interaction_at: Mapped[datetime] = mapped_column(DateTime(timezone=True), default=utc_now)
@@ -117,7 +116,7 @@ class UserCommunicationStyle(Base):
     detail_preference: Mapped[float] = mapped_column(Float, default=0.5)  # 0=concise, 1=detailed
 
     # Engagement signals used to learn preferences
-    engagement_signals: Mapped[dict] = mapped_column(JSONB, default=dict)
+    engagement_signals: Mapped[dict] = mapped_column(PortableJSON, default=dict)
 
     samples_collected: Mapped[int] = mapped_column(default=0)
     confidence: Mapped[float] = mapped_column(Float, default=0.0)  # 0-1
@@ -140,7 +139,7 @@ class ScheduledEvent(Base):
     trigger_at: Mapped[datetime] = mapped_column(DateTime(timezone=True), index=True)
 
     title: Mapped[str] = mapped_column(String(255))
-    context: Mapped[dict] = mapped_column(JSONB, default=dict)
+    context: Mapped[dict] = mapped_column(PortableJSON, default=dict)
 
     is_recurring: Mapped[bool] = mapped_column(Boolean, default=False)
     recurrence_rule: Mapped[str | None] = mapped_column(String(100))
diff --git a/src/daemon_boyfriend/services/mood_service.py b/src/daemon_boyfriend/services/mood_service.py
index 622342e..8df0af9 100644
--- a/src/daemon_boyfriend/services/mood_service.py
+++ b/src/daemon_boyfriend/services/mood_service.py
@@ -10,6 +10,7 @@ from sqlalchemy.ext.asyncio import AsyncSession
 
 from daemon_boyfriend.config import settings
 from daemon_boyfriend.models import BotState, MoodHistory
+from daemon_boyfriend.models.base import ensure_utc
 
 logger = logging.getLogger(__name__)
 
@@ -61,7 +62,7 @@ class MoodService:
 
         # Apply time decay toward neutral
         hours_since_update = (
-            datetime.now(timezone.utc) - bot_state.mood_updated_at
+            datetime.now(timezone.utc) - ensure_utc(bot_state.mood_updated_at)
         ).total_seconds() / 3600
         decay_factor = max(0, 1 - (settings.mood_decay_rate * hours_since_update))
 
@@ -142,7 +143,7 @@ class MoodService:
     async def get_stats(self, guild_id: int | None = None) -> dict:
         """Get bot statistics."""
         bot_state = await self.get_or_create_bot_state(guild_id)
-        age_delta = datetime.now(timezone.utc) - bot_state.first_activated_at
+        age_delta = datetime.now(timezone.utc) - ensure_utc(bot_state.first_activated_at)
 
         return {
             "age_days": age_delta.days,
diff --git a/src/daemon_boyfriend/services/relationship_service.py b/src/daemon_boyfriend/services/relationship_service.py
index a0339e2..0d1c78b 100644
--- a/src/daemon_boyfriend/services/relationship_service.py
+++ b/src/daemon_boyfriend/services/relationship_service.py
@@ -8,6 +8,7 @@ from sqlalchemy import select
 from sqlalchemy.ext.asyncio import AsyncSession
 
 from daemon_boyfriend.models import User, UserRelationship
+from daemon_boyfriend.models.base import ensure_utc
 
 logger = logging.getLogger(__name__)
 
@@ -211,7 +212,7 @@ class RelationshipService:
         level = self.get_level(rel.relationship_score)
 
         # Calculate time since first interaction
-        time_known = datetime.now(timezone.utc) - rel.first_interaction_at
+        time_known = datetime.now(timezone.utc) - ensure_utc(rel.first_interaction_at)
         days_known = time_known.days
 
         return {
diff --git a/src/daemon_boyfriend/services/self_awareness_service.py b/src/daemon_boyfriend/services/self_awareness_service.py
index 4ce4bf4..68de0f6 100644
--- a/src/daemon_boyfriend/services/self_awareness_service.py
+++ b/src/daemon_boyfriend/services/self_awareness_service.py
@@ -13,6 +13,7 @@ from daemon_boyfriend.models import (
     UserFact,
     UserRelationship,
 )
+from daemon_boyfriend.models.base import ensure_utc
 
 logger = logging.getLogger(__name__)
 
@@ -36,7 +37,7 @@ class SelfAwarenessService:
             await self._session.flush()
 
         # Calculate age
-        age_delta = datetime.now(timezone.utc) - bot_state.first_activated_at
+        age_delta = datetime.now(timezone.utc) - ensure_utc(bot_state.first_activated_at)
 
         # Count users (from database)
         user_count = await self._count_users()
@@ -76,7 +77,7 @@ class SelfAwarenessService:
         facts_count = facts_result.scalar() or 0
 
         if rel:
-            days_known = (datetime.now(timezone.utc) - rel.first_interaction_at).days
+            days_known = (datetime.now(timezone.utc) - ensure_utc(rel.first_interaction_at)).days
             return {
                 "first_met": rel.first_interaction_at,
                 "days_known": days_known,
diff --git a/tests/test_providers.py b/tests/test_providers.py
index c1b4ed0..1f8d814 100644
--- a/tests/test_providers.py
+++ b/tests/test_providers.py
@@ -3,15 +3,16 @@
 from unittest.mock import AsyncMock, MagicMock, patch
 
 import pytest
+
+from daemon_boyfriend.services.providers.anthropic import AnthropicProvider
 from daemon_boyfriend.services.providers.base import (
     AIProvider,
     AIResponse,
-    Message,
     ImageAttachment,
+    Message,
 )
-from daemon_boyfriend.services.providers.openai import OpenAIProvider
-from daemon_boyfriend.services.providers.anthropic import AnthropicProvider
 from daemon_boyfriend.services.providers.gemini import GeminiProvider
+from daemon_boyfriend.services.providers.openai import OpenAIProvider
 from daemon_boyfriend.services.providers.openrouter import OpenRouterProvider
 
 
@@ -144,12 +145,6 @@ class TestAnthropicProvider:
         with patch(
             "daemon_boyfriend.services.providers.anthropic.anthropic.AsyncAnthropic"
         ) as mock_class:
-    """Tests for the Anthropic provider."""
-
-    @pytest.fixture
-    def provider(self, mock_anthropic_client):
-        """Create an Anthropic provider with mocked client."""
-        with patch("daemon_boyfriend.services.providers.anthropic.anthropic.AsyncAnthropic") as mock_class:
             mock_class.return_value = mock_anthropic_client
             provider = AnthropicProvider(api_key="test_key", model="claude-sonnet-4-20250514")
             provider.client = mock_anthropic_client