diff --git a/src/encryptid/key-derivation.ts b/src/encryptid/key-derivation.ts
index 38f7cf9..5a4a721 100644
--- a/src/encryptid/key-derivation.ts
+++ b/src/encryptid/key-derivation.ts
@@ -7,6 +7,8 @@
 
 import { bufferToBase64url, base64urlToBuffer } from './webauthn';
 import { deriveEOAFromPRF } from './eoa-derivation';
+import { p256 } from '@noble/curves/p256';
+import { ed25519 } from '@noble/curves/ed25519';
 
 // ============================================================================
 // TYPES
@@ -243,23 +245,30 @@ export class EncryptIDKeyManager {
       256
     );
 
-    // For now, generate a non-deterministic key pair
-    // TODO: Use @noble/curves for deterministic generation from seed
-    // This is a placeholder - in production, use the seed deterministically
-    const keyPair = await crypto.subtle.generateKey(
-      {
-        name: 'ECDSA',
-        namedCurve: 'P-256',
-      },
-      false,  // Private key not extractable
-      ['sign', 'verify']
+    // Derive deterministic P-256 key pair from seed using @noble/curves
+    const seedBytes = new Uint8Array(seed);
+    const publicKeyUncompressed = p256.getPublicKey(seedBytes, false); // 65 bytes: 04 || x || y
+
+    // Import into WebCrypto as ECDSA key pair for sign/verify operations
+    // PKCS8 wrapping for private key import
+    const pkcs8 = buildP256Pkcs8(seedBytes);
+    const privateKey = await crypto.subtle.importKey(
+      'pkcs8',
+      pkcs8,
+      { name: 'ECDSA', namedCurve: 'P-256' },
+      false,  // Not extractable
+      ['sign']
     );
 
-    // Store seed hash for verification
-    console.log('EncryptID: Signing key derived (seed hash):',
-      bufferToBase64url(await crypto.subtle.digest('SHA-256', seed)).slice(0, 16));
+    const publicKey = await crypto.subtle.importKey(
+      'raw',
+      publicKeyUncompressed as BufferSource,
+      { name: 'ECDSA', namedCurve: 'P-256' },
+      true,
+      ['verify']
+    );
 
-    return keyPair;
+    return { privateKey, publicKey };
   }
 
   /**
@@ -292,25 +301,17 @@ export class EncryptIDKeyManager {
    * Format: did:key:z6Mk... (multicodec ed25519-pub + base58btc)
    */
   private async generateDID(seed: Uint8Array): Promise<string> {
-    // Ed25519 public key generation would go here
-    // For now, we'll create a placeholder using the seed hash
-    // TODO: Use @noble/ed25519 for proper Ed25519 key generation
-
-    const publicKeyHash = await crypto.subtle.digest('SHA-256', seed as BufferSource);
-    const publicKeyBytes = new Uint8Array(publicKeyHash).slice(0, 32);
+    // Derive Ed25519 public key from seed using @noble/curves
+    const publicKeyBytes = ed25519.getPublicKey(seed);
 
     // Multicodec prefix for Ed25519 public key: 0xed01
-    const multicodecPrefix = new Uint8Array([0xed, 0x01]);
     const multicodecKey = new Uint8Array(34);
-    multicodecKey.set(multicodecPrefix);
+    multicodecKey[0] = 0xed;
+    multicodecKey[1] = 0x01;
     multicodecKey.set(publicKeyBytes, 2);
 
-    // Base58btc encode (simplified - use a proper library in production)
-    const base58Encoded = bufferToBase64url(multicodecKey.buffer)
-      .replace(/-/g, '')
-      .replace(/_/g, '');
-
-    return `did:key:z${base58Encoded}`;
+    // Encode as base58btc (did:key spec requires 'z' prefix + base58btc)
+    return `did:key:z${base58btcEncode(multicodecKey)}`;
   }
 
   /**
@@ -536,6 +537,70 @@ export async function unwrapSharedKey(
   );
 }
 
+// ============================================================================
+// HELPERS
+// ============================================================================
+
+/**
+ * Build a PKCS#8 DER wrapper around a raw P-256 private key (32 bytes)
+ * so it can be imported via WebCrypto's importKey('pkcs8', ...).
+ *
+ * Structure: SEQUENCE { version, AlgorithmIdentifier { ecPublicKey, P-256 }, OCTET STRING { SEQUENCE { version, privateKey } } }
+ */
+function buildP256Pkcs8(rawPrivateKey: Uint8Array): ArrayBuffer {
+  // DER-encoded PKCS#8 template for P-256 with a 32-byte private key
+  // Pre-computed ASN.1 header (version + algorithm identifier)
+  const header = new Uint8Array([
+    0x30, 0x41,       // SEQUENCE (65 bytes total)
+    0x02, 0x01, 0x00, // INTEGER version = 0
+    0x30, 0x13,       // SEQUENCE (AlgorithmIdentifier)
+    0x06, 0x07,       //   OID 1.2.840.10045.2.1 (ecPublicKey)
+    0x2a, 0x86, 0x48, 0xce, 0x3d, 0x02, 0x01,
+    0x06, 0x08,       //   OID 1.2.840.10045.3.1.7 (P-256)
+    0x2a, 0x86, 0x48, 0xce, 0x3d, 0x03, 0x01, 0x07,
+    0x04, 0x27,       // OCTET STRING (39 bytes)
+    0x30, 0x25,       //   SEQUENCE (37 bytes)
+    0x02, 0x01, 0x01, //     INTEGER version = 1
+    0x04, 0x20,       //     OCTET STRING (32 bytes) — the private key
+  ]);
+
+  const result = new Uint8Array(header.length + 32);
+  result.set(header);
+  result.set(rawPrivateKey, header.length);
+  return result.buffer;
+}
+
+/**
+ * Base58btc encoding (Bitcoin alphabet).
+ * Minimal implementation — no external dependency needed.
+ */
+const BASE58_ALPHABET = '123456789ABCDEFGHJKLMNPQRSTUVWXYZabcdefghijkmnopqrstuvwxyz';
+
+function base58btcEncode(bytes: Uint8Array): string {
+  // Count leading zeros
+  let zeroes = 0;
+  for (const b of bytes) {
+    if (b !== 0) break;
+    zeroes++;
+  }
+
+  // Convert to base58 using bigint arithmetic
+  let num = BigInt(0);
+  for (const b of bytes) {
+    num = num * 256n + BigInt(b);
+  }
+
+  let encoded = '';
+  while (num > 0n) {
+    const remainder = Number(num % 58n);
+    num = num / 58n;
+    encoded = BASE58_ALPHABET[remainder] + encoded;
+  }
+
+  // Prepend '1' for each leading zero byte
+  return '1'.repeat(zeroes) + encoded;
+}
+
 // ============================================================================
 // SINGLETON INSTANCE
 // ============================================================================
diff --git a/src/encryptid/recovery.ts b/src/encryptid/recovery.ts
index 4a61110..ba1d2d5 100644
--- a/src/encryptid/recovery.ts
+++ b/src/encryptid/recovery.ts
@@ -106,13 +106,34 @@ export interface RecoveryRequest {
 export class RecoveryManager {
   private config: RecoveryConfig | null = null;
   private activeRequest: RecoveryRequest | null = null;
+  private loaded = false;
 
   constructor() {
-    this.loadConfig();
+    this.loadLocalSettings();
+  }
+
+  /** Get the auth token for server API calls */
+  private getAuthToken(): string | null {
+    try {
+      return localStorage.getItem('encryptid_token');
+    } catch {
+      return null;
+    }
+  }
+
+  /** Resolve EncryptID API base URL */
+  private getApiBase(): string {
+    // When running on the encryptid domain, use relative paths
+    if (typeof location !== 'undefined' && location.hostname.includes('auth.')) {
+      return '';
+    }
+    // From rspace canvas, reach encryptid via its public URL
+    return 'https://auth.rspace.online';
   }
 
   /**
-   * Initialize recovery with default configuration
+   * Initialize recovery with default configuration.
+   * Fetches existing guardians from server if authenticated.
    */
   async initializeRecovery(threshold: number = 3): Promise<RecoveryConfig> {
     this.config = {
@@ -123,25 +144,69 @@ export class RecoveryManager {
       updatedAt: Date.now(),
     };
 
-    await this.saveConfig();
+    // Try to load existing guardians from server
+    await this.syncFromServer();
+
+    await this.saveLocalSettings();
     return this.config;
   }
 
   /**
-   * Add a guardian
+   * Ensure config is loaded (call before operations that need config)
+   */
+  async ensureLoaded(): Promise<void> {
+    if (this.loaded) return;
+    await this.syncFromServer();
+    this.loaded = true;
+  }
+
+  /**
+   * Add a guardian — persists to server API (which sends invite email).
+   * Falls back to local-only if not authenticated.
    */
   async addGuardian(guardian: Omit<Guardian, 'id' | 'addedAt'>): Promise<Guardian> {
     if (!this.config) {
       throw new Error('Recovery not initialized');
     }
 
-    if (this.config.guardians.length >= 7) {
-      throw new Error('Maximum of 7 guardians allowed');
+    if (this.config.guardians.length >= 3) {
+      throw new Error('Maximum of 3 guardians allowed. Remove one first.');
+    }
+
+    const token = this.getAuthToken();
+    let serverId: string | undefined;
+
+    // POST to server — creates DB row + sends invite email
+    if (token) {
+      const res = await fetch(`${this.getApiBase()}/api/guardians`, {
+        method: 'POST',
+        headers: {
+          'Content-Type': 'application/json',
+          'Authorization': `Bearer ${token}`,
+        },
+        body: JSON.stringify({
+          name: guardian.name,
+          email: guardian.contactEmail || undefined,
+        }),
+      });
+
+      if (!res.ok) {
+        const err = await res.json().catch(() => ({ error: 'Server error' }));
+        throw new Error(err.error || `Server error: ${res.status}`);
+      }
+
+      const data = await res.json();
+      serverId = data.guardian?.id;
+
+      console.log('EncryptID: Guardian added via server', {
+        id: serverId,
+        inviteUrl: data.inviteUrl,
+      });
     }
 
     const newGuardian: Guardian = {
       ...guardian,
-      id: bufferToBase64url(crypto.getRandomValues(new Uint8Array(16)).buffer),
+      id: serverId || bufferToBase64url(crypto.getRandomValues(new Uint8Array(16)).buffer),
       addedAt: Date.now(),
     };
 
@@ -149,7 +214,7 @@ export class RecoveryManager {
     this.config.guardianListHash = await this.hashGuardianList();
     this.config.updatedAt = Date.now();
 
-    await this.saveConfig();
+    await this.saveLocalSettings();
 
     console.log('EncryptID: Guardian added', {
       type: GuardianType[guardian.type],
@@ -160,7 +225,7 @@ export class RecoveryManager {
   }
 
   /**
-   * Remove a guardian
+   * Remove a guardian — deletes from server API and local config.
    */
   async removeGuardian(guardianId: string): Promise<void> {
     if (!this.config) {
@@ -172,20 +237,25 @@ export class RecoveryManager {
       throw new Error('Guardian not found');
     }
 
-    // Don't allow removing if it would make recovery impossible
-    const remainingWeight = this.config.guardians
-      .filter(g => g.id !== guardianId)
-      .reduce((sum, g) => sum + g.weight, 0);
+    // DELETE from server
+    const token = this.getAuthToken();
+    if (token) {
+      const res = await fetch(`${this.getApiBase()}/api/guardians/${guardianId}`, {
+        method: 'DELETE',
+        headers: { 'Authorization': `Bearer ${token}` },
+      });
 
-    if (remainingWeight < this.config.threshold) {
-      throw new Error('Cannot remove guardian: would make recovery impossible');
+      if (!res.ok && res.status !== 404) {
+        const err = await res.json().catch(() => ({ error: 'Server error' }));
+        throw new Error(err.error || `Server error: ${res.status}`);
+      }
     }
 
     this.config.guardians.splice(index, 1);
     this.config.guardianListHash = await this.hashGuardianList();
     this.config.updatedAt = Date.now();
 
-    await this.saveConfig();
+    await this.saveLocalSettings();
 
     console.log('EncryptID: Guardian removed');
   }
@@ -210,7 +280,7 @@ export class RecoveryManager {
     this.config.threshold = threshold;
     this.config.updatedAt = Date.now();
 
-    await this.saveConfig();
+    await this.saveLocalSettings();
 
     console.log('EncryptID: Threshold updated to', threshold);
   }
@@ -231,7 +301,7 @@ export class RecoveryManager {
     this.config.delaySeconds = delaySeconds;
     this.config.updatedAt = Date.now();
 
-    await this.saveConfig();
+    await this.saveLocalSettings();
 
     console.log('EncryptID: Delay updated to', delaySeconds, 'seconds');
   }
@@ -254,7 +324,8 @@ export class RecoveryManager {
   }
 
   /**
-   * Verify a guardian is still reachable/valid
+   * Verify a guardian is still reachable/valid.
+   * Checks server for current guardian status (pending/accepted).
    */
   async verifyGuardian(guardianId: string): Promise<boolean> {
     if (!this.config) {
@@ -266,15 +337,39 @@ export class RecoveryManager {
       throw new Error('Guardian not found');
     }
 
-    // In production, this would:
-    // - For SECONDARY_PASSKEY: verify credential still exists
-    // - For TRUSTED_CONTACT: send verification request
-    // - For INSTITUTIONAL: ping service endpoint
-    // - For HARDWARE_KEY: request signature
+    const token = this.getAuthToken();
+    if (token) {
+      // Fetch current guardian list from server to check status
+      const res = await fetch(`${this.getApiBase()}/api/guardians`, {
+        headers: { 'Authorization': `Bearer ${token}` },
+      });
 
+      if (res.ok) {
+        const data = await res.json();
+        const serverGuardian = data.guardians?.find((g: any) => g.id === guardianId);
+
+        if (!serverGuardian) {
+          throw new Error('Guardian not found on server — may have been removed');
+        }
+
+        // Check acceptance status
+        if (serverGuardian.status === 'accepted') {
+          guardian.lastVerified = Date.now();
+          await this.saveLocalSettings();
+          return true;
+        }
+
+        // Still pending — guardian hasn't accepted invite yet
+        if (serverGuardian.status === 'pending') {
+          console.log('EncryptID: Guardian invite still pending', { guardianId });
+          return false;
+        }
+      }
+    }
+
+    // Fallback: mark as verified locally (offline mode)
     guardian.lastVerified = Date.now();
-    await this.saveConfig();
-
+    await this.saveLocalSettings();
     return true;
   }
 
@@ -458,9 +553,11 @@ export class RecoveryManager {
   }
 
   /**
-   * Save configuration to storage
+   * Save local settings (threshold, delay) to localStorage.
+   * Guardian CRUD goes through the server API — this only persists
+   * config that the server doesn't track (threshold, delay, type metadata).
    */
-  private async saveConfig(): Promise<void> {
+  private async saveLocalSettings(): Promise<void> {
     if (!this.config) return;
 
     try {
@@ -471,9 +568,10 @@ export class RecoveryManager {
   }
 
   /**
-   * Load configuration from storage
+   * Load local settings from localStorage (synchronous, for constructor).
+   * Call syncFromServer() after construction for full server sync.
    */
-  private loadConfig(): void {
+  private loadLocalSettings(): void {
     try {
       const stored = localStorage.getItem('encryptid_recovery');
       if (stored) {
@@ -485,23 +583,87 @@ export class RecoveryManager {
   }
 
   /**
-   * Notify user of recovery events
+   * Sync guardian list from server API into local config.
+   * Maps server guardian model to client Guardian type.
+   */
+  private async syncFromServer(): Promise<void> {
+    const token = this.getAuthToken();
+    if (!token) return;
+
+    try {
+      const res = await fetch(`${this.getApiBase()}/api/guardians`, {
+        headers: { 'Authorization': `Bearer ${token}` },
+      });
+
+      if (!res.ok) return;
+
+      const data = await res.json();
+      if (!data.guardians || !Array.isArray(data.guardians)) return;
+
+      if (!this.config) {
+        this.config = {
+          threshold: data.threshold || 2,
+          delaySeconds: 48 * 60 * 60,
+          guardians: [],
+          guardianListHash: '',
+          updatedAt: Date.now(),
+        };
+      }
+
+      // Build a map of existing local guardians for metadata preservation
+      const localMap = new Map(this.config.guardians.map(g => [g.id, g]));
+
+      // Merge server guardians with local type metadata
+      this.config.guardians = data.guardians.map((sg: any) => {
+        const local = localMap.get(sg.id);
+        return {
+          id: sg.id,
+          type: local?.type ?? GuardianType.TRUSTED_CONTACT,
+          name: sg.name,
+          weight: local?.weight ?? 1,
+          contactEmail: sg.email || local?.contactEmail,
+          addedAt: sg.createdAt ? new Date(sg.createdAt).getTime() : (local?.addedAt ?? Date.now()),
+          lastVerified: sg.status === 'accepted' ? (sg.acceptedAt ? new Date(sg.acceptedAt).getTime() : Date.now()) : local?.lastVerified,
+          // Preserve type-specific fields from local
+          credentialId: local?.credentialId,
+          contactDID: local?.contactDID,
+          serviceUrl: local?.serviceUrl,
+          delaySeconds: local?.delaySeconds,
+        } satisfies Guardian;
+      });
+
+      this.config.guardianListHash = await this.hashGuardianList();
+      this.config.updatedAt = Date.now();
+
+      await this.saveLocalSettings();
+
+      console.log('EncryptID: Synced guardians from server', {
+        count: this.config.guardians.length,
+      });
+    } catch (error) {
+      console.warn('EncryptID: Failed to sync guardians from server', error);
+    }
+  }
+
+  /**
+   * Notify user of recovery events via CustomEvent on document.
    */
   private async notifyUser(
     event: string,
     request: RecoveryRequest
   ): Promise<void> {
-    // In production, this would:
-    // - Send email notification
-    // - Send push notification
-    // - Send SMS (if configured)
-    // - Post to webhook
-
     console.log('EncryptID: User notification', { event, requestId: request.id });
+
+    if (typeof document !== 'undefined') {
+      document.dispatchEvent(new CustomEvent('encryptid:recovery', {
+        detail: { event, requestId: request.id, status: request.status },
+      }));
+    }
   }
 
   /**
-   * Notify guardians of recovery events
+   * Notify guardians of recovery events via CustomEvent on document.
+   * Server-side email notifications are handled by the guardian invite flow.
    */
   private async notifyGuardians(
     event: string,
@@ -509,13 +671,19 @@ export class RecoveryManager {
   ): Promise<void> {
     if (!this.config) return;
 
-    // In production, this would notify each guardian through their preferred channel
-    for (const guardian of this.config.guardians) {
-      console.log('EncryptID: Guardian notification', {
-        event,
-        guardianId: guardian.id,
-        guardianType: GuardianType[guardian.type],
-      });
+    console.log('EncryptID: Guardian notification', {
+      event,
+      guardianCount: this.config.guardians.length,
+    });
+
+    if (typeof document !== 'undefined') {
+      document.dispatchEvent(new CustomEvent('encryptid:guardian-notification', {
+        detail: {
+          event,
+          requestId: request.id,
+          guardianIds: this.config.guardians.map(g => g.id),
+        },
+      }));
     }
   }
 }
diff --git a/src/encryptid/ui/guardian-setup.ts b/src/encryptid/ui/guardian-setup.ts
index 70ad83c..388effb 100644
--- a/src/encryptid/ui/guardian-setup.ts
+++ b/src/encryptid/ui/guardian-setup.ts
@@ -449,20 +449,22 @@ export class GuardianSetupElement extends HTMLElement {
 
   connectedCallback() {
     this.loadConfig();
-    this.render();
   }
 
-  private loadConfig() {
+  private async loadConfig() {
     const manager = getRecoveryManager();
+
+    // Ensure server sync is complete before reading config
+    await manager.ensureLoaded();
     this.config = manager.getConfig();
 
     // Initialize if not configured
     if (!this.config) {
-      manager.initializeRecovery(3).then(() => {
-        this.config = manager.getConfig();
-        this.render();
-      });
+      await manager.initializeRecovery(3);
+      this.config = manager.getConfig();
     }
+
+    this.render();
   }
 
   private render() {