diff --git a/.gsd/milestones/M001/slices/S01/tasks/T03-SUMMARY.md b/.gsd/milestones/M001/slices/S01/tasks/T03-SUMMARY.md
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+---
+id: T03
+parent: S01
+milestone: M001
+provides:
+  - Potrace vectorization function for converting binary images to SVG
+key_files:
+  - engine/pipeline/vectorize.py
+  - engine/tests/test_vectorize.py
+key_decisions: []
+patterns_established:
+  - vectorize module exposes per-backend trace functions (potrace_trace) returning SVG strings
+observability_surfaces: []
+duration: ""
+verification_result: passed
+completed_at: 2026-03-26T05:00:00.000Z
+blocker_discovered: false
+---
+
+# T03: Potrace vectorization (Mode A)
+
+**Implemented potrace_trace() function that converts preprocessed binary numpy arrays to well-formed SVG via pypotrace, with tunable turdsize/alphamax/opticurve/opttolerance params — 19 tests passing**
+
+## What Happened
+
+Created `engine/pipeline/vectorize.py` with the `potrace_trace()` function. It accepts a 2D binary numpy array (output of the preprocessing pipeline), converts nonzero pixels to a uint32 bitmap for pypotrace, traces paths with configurable parameters (turdsize, alphamax, opticurve, opttolerance), and converts the resulting path curves into SVG path data (M/L/C/Z commands). The output is a complete, well-formed SVG string with correct dimensions and viewBox.
+
+The internal `_path_to_svg()` helper handles both corner segments (L commands) and cubic bezier segments (C commands with c1/c2 control points) from the potrace output.
+
+Created 19 tests in `engine/tests/test_vectorize.py` covering: basic SVG output validation (well-formed XML, correct dimensions, path element), shape tracing (squares produce corners, circles produce bezier curves), parameter tuning (turdsize despeckle, opticurve on/off, alphamax polygon mode), edge cases (all-black, all-white, non-square images, different dtypes, 3D rejection), and integration with the preprocessing pipeline.
+
+## Verification
+
+```
+cd engine && .venv/bin/python -m pytest tests/test_vectorize.py -v -k potrace
+# 19 passed in 0.11s
+
+.venv/bin/python -m pytest tests/ -v
+# 43 passed in 0.16s (24 preprocessing + 19 vectorize)
+```
+
+## Verification Evidence
+
+| # | Command | Exit Code | Verdict | Duration |
+|---|---------|-----------|---------|----------|
+| 1 | `.venv/bin/python -m pytest tests/test_vectorize.py -v -k potrace` | 0 | ✅ pass | 110ms |
+| 2 | `.venv/bin/python -m pytest tests/ -v` | 0 | ✅ pass | 160ms |
+
+## Diagnostics
+
+Import and test directly: `from pipeline.vectorize import potrace_trace`. Pass any 2D numpy array of 0/nonzero values. The returned SVG string can be written to a file and opened in a browser for visual inspection.
+
+## Deviations
+
+None.
+
+## Known Issues
+
+pypotrace's Bitmap requires uint32 data and interprets values as zero/nonzero (not 0/255). The `potrace_trace()` function handles this conversion internally via `(binary_img > 0).astype(np.uint32)`.
+
+## Files Created/Modified
+
+- `engine/pipeline/vectorize.py` — Potrace vectorization with potrace_trace() and SVG path generation
+- `engine/tests/test_vectorize.py` — 19 tests covering output format, shapes, params, edge cases, and preprocessing integration
diff --git a/engine/pipeline/vectorize.py b/engine/pipeline/vectorize.py
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index 0000000..4158718
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+++ b/engine/pipeline/vectorize.py
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+"""Vectorization pipeline — converts preprocessed binary images to SVG."""
+
+import numpy as np
+import potrace
+
+
+def potrace_trace(
+    binary_img: np.ndarray,
+    turdsize: int = 2,
+    alphamax: float = 1.0,
+    opticurve: bool = True,
+    opttolerance: float = 0.2,
+) -> str:
+    """Trace a binary image using Potrace and return an SVG string.
+
+    Args:
+        binary_img: 2D numpy array — nonzero pixels are foreground.
+        turdsize: Despeckle threshold; curves with enclosed area below this are removed.
+        alphamax: Corner detection threshold (0.0 = polygon, 1.3333 = no corners).
+        opticurve: Whether to optimize curves by reducing Bezier segments.
+        opttolerance: Tolerance for curve optimization.
+
+    Returns:
+        Well-formed SVG string.
+    """
+    if binary_img.ndim != 2:
+        raise ValueError(f"Expected 2D binary image, got shape {binary_img.shape}")
+
+    h, w = binary_img.shape
+
+    # Potrace interprets nonzero pixels as foreground.
+    # Convert to uint32 — pypotrace needs values that fit in a C int.
+    data = (binary_img > 0).astype(np.uint32)
+
+    bmp = potrace.Bitmap(data)
+    path = bmp.trace(
+        turdsize=turdsize,
+        alphamax=alphamax,
+        opticurve=int(opticurve),
+        opttolerance=opttolerance,
+    )
+
+    return _path_to_svg(path, w, h)
+
+
+def _path_to_svg(path, width: int, height: int) -> str:
+    """Convert a potrace Path object to an SVG string."""
+    parts = []
+    for curve in path:
+        sx, sy = curve.start_point
+        parts.append(f"M {sx:.3f},{sy:.3f}")
+        for segment in curve.segments:
+            if segment.is_corner:
+                cx, cy = segment.c
+                ex, ey = segment.end_point
+                parts.append(f"L {cx:.3f},{cy:.3f} L {ex:.3f},{ey:.3f}")
+            else:
+                c1x, c1y = segment.c1
+                c2x, c2y = segment.c2
+                ex, ey = segment.end_point
+                parts.append(
+                    f"C {c1x:.3f},{c1y:.3f} {c2x:.3f},{c2y:.3f} {ex:.3f},{ey:.3f}"
+                )
+        parts.append("Z")
+
+    d = " ".join(parts)
+
+    return (
+        f'<svg xmlns="http://www.w3.org/2000/svg" '
+        f'width="{width}" height="{height}" '
+        f'viewBox="0 0 {width} {height}">'
+        f'<path d="{d}" fill="black" fill-rule="evenodd" stroke="none"/>'
+        f"</svg>"
+    )
diff --git a/engine/tests/test_vectorize.py b/engine/tests/test_vectorize.py
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+++ b/engine/tests/test_vectorize.py
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+"""Tests for the Potrace vectorization module."""
+
+import xml.etree.ElementTree as ET
+
+import numpy as np
+import pytest
+
+from pipeline.vectorize import potrace_trace
+
+
+# ---------------------------------------------------------------------------
+# Helpers
+# ---------------------------------------------------------------------------
+
+def _make_square(size: int = 100, x0: int = 20, x1: int = 80) -> np.ndarray:
+    """Create a binary image with a filled white square on black background."""
+    img = np.zeros((size, size), dtype=np.uint8)
+    img[x0:x1, x0:x1] = 255
+    return img
+
+
+def _make_circle(size: int = 100, radius: int = 30) -> np.ndarray:
+    """Create a binary image with a filled white circle."""
+    img = np.zeros((size, size), dtype=np.uint8)
+    cy, cx = size // 2, size // 2
+    Y, X = np.ogrid[:size, :size]
+    mask = (X - cx) ** 2 + (Y - cy) ** 2 < radius ** 2
+    img[mask] = 255
+    return img
+
+
+def _parse_svg(svg_str: str) -> ET.Element:
+    """Parse SVG string and return root element."""
+    return ET.fromstring(svg_str)
+
+
+# ---------------------------------------------------------------------------
+# Basic output tests
+# ---------------------------------------------------------------------------
+
+class TestPotraceBasicOutput:
+    def test_returns_string(self):
+        svg = potrace_trace(_make_square())
+        assert isinstance(svg, str)
+
+    def test_svg_is_well_formed_xml(self):
+        svg = potrace_trace(_make_square())
+        root = _parse_svg(svg)
+        assert root.tag == "{http://www.w3.org/2000/svg}svg"
+
+    def test_svg_has_correct_dimensions(self):
+        svg = potrace_trace(_make_square(size=200))
+        root = _parse_svg(svg)
+        assert root.get("width") == "200"
+        assert root.get("height") == "200"
+
+    def test_svg_has_viewbox(self):
+        svg = potrace_trace(_make_square(size=150))
+        root = _parse_svg(svg)
+        assert root.get("viewBox") == "0 0 150 150"
+
+    def test_svg_contains_path_element(self):
+        svg = potrace_trace(_make_square())
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        paths = root.findall("svg:path", ns)
+        assert len(paths) == 1
+
+    def test_path_d_attribute_nonempty(self):
+        svg = potrace_trace(_make_square())
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        path_el = root.find("svg:path", ns)
+        d = path_el.get("d", "")
+        assert len(d) > 0
+        assert "M" in d
+
+
+# ---------------------------------------------------------------------------
+# Tracing shapes
+# ---------------------------------------------------------------------------
+
+class TestPotraceShapes:
+    def test_square_produces_corner_segments(self):
+        """A sharp square with alphamax=0 should produce L commands (corners)."""
+        svg = potrace_trace(_make_square(), alphamax=0.0)
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        assert "L" in d
+
+    def test_circle_produces_curve_segments(self):
+        """A circle should produce C (cubic bezier) commands."""
+        svg = potrace_trace(_make_circle())
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        assert "C" in d
+
+    def test_path_closes_with_z(self):
+        svg = potrace_trace(_make_square())
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        assert d.rstrip().endswith("Z")
+
+
+# ---------------------------------------------------------------------------
+# Parameter tuning
+# ---------------------------------------------------------------------------
+
+class TestPotraceParams:
+    def test_turdsize_removes_small_features(self):
+        """High turdsize should remove a tiny speck, producing empty path data."""
+        img = np.zeros((100, 100), dtype=np.uint8)
+        img[50, 50] = 255  # single pixel speck
+        svg = potrace_trace(img, turdsize=10)
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        # A single pixel with turdsize=10 should be suppressed → empty or near-empty path
+        assert "M" not in d or d.strip() == ""
+
+    def test_opticurve_off_vs_on(self):
+        """Disabling opticurve should produce different (typically more verbose) output."""
+        img = _make_circle()
+        svg_on = potrace_trace(img, opticurve=True)
+        svg_off = potrace_trace(img, opticurve=False)
+        # They should differ (optimization reduces segments)
+        assert svg_on != svg_off
+
+    def test_alphamax_polygon_mode(self):
+        """alphamax=0 forces polygon mode — output should contain L but no C commands."""
+        svg = potrace_trace(_make_square(), alphamax=0.0)
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        assert "L" in d
+        assert "C" not in d
+
+    def test_default_params_produce_valid_svg(self):
+        """Default parameters should produce valid SVG for a standard test image."""
+        svg = potrace_trace(_make_square())
+        root = _parse_svg(svg)
+        assert root.tag == "{http://www.w3.org/2000/svg}svg"
+
+
+# ---------------------------------------------------------------------------
+# Edge cases & errors
+# ---------------------------------------------------------------------------
+
+class TestPotraceEdgeCases:
+    def test_all_black_image(self):
+        """An all-black (all-zero) image should produce valid SVG with empty path."""
+        img = np.zeros((50, 50), dtype=np.uint8)
+        svg = potrace_trace(img)
+        root = _parse_svg(svg)
+        assert root.tag == "{http://www.w3.org/2000/svg}svg"
+
+    def test_all_white_image(self):
+        """An all-white image should trace the entire frame."""
+        img = np.ones((50, 50), dtype=np.uint8) * 255
+        svg = potrace_trace(img)
+        root = _parse_svg(svg)
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        path_el = root.find("svg:path", ns)
+        d = path_el.get("d", "")
+        assert "M" in d
+
+    def test_rejects_3d_input(self):
+        with pytest.raises(ValueError, match="2D"):
+            potrace_trace(np.zeros((50, 50, 3), dtype=np.uint8))
+
+    def test_rectangular_image(self):
+        """Non-square images should work and set correct dimensions."""
+        img = np.zeros((80, 120), dtype=np.uint8)
+        img[10:70, 10:110] = 255
+        svg = potrace_trace(img)
+        root = _parse_svg(svg)
+        assert root.get("width") == "120"
+        assert root.get("height") == "80"
+
+    def test_uint8_and_uint32_both_work(self):
+        """Potrace should accept common numpy dtypes."""
+        base = _make_square()
+        svg8 = potrace_trace(base.astype(np.uint8))
+        svg32 = potrace_trace(base.astype(np.uint32))
+        # Both should be valid SVG with the same structure
+        root8 = _parse_svg(svg8)
+        root32 = _parse_svg(svg32)
+        assert root8.tag == root32.tag
+
+
+# ---------------------------------------------------------------------------
+# Integration with preprocessing output
+# ---------------------------------------------------------------------------
+
+class TestPotracePreprocessingIntegration:
+    def test_accepts_thresholded_image(self):
+        """Output of preprocessing threshold() is a valid input for potrace_trace."""
+        from pipeline.preprocessing import threshold, to_grayscale
+        import cv2
+
+        # Simulate a preprocessed image
+        img = np.zeros((100, 100, 3), dtype=np.uint8)
+        cv2.rectangle(img, (20, 20), (80, 80), (255, 255, 255), -1)
+        gray = to_grayscale(img)
+        binary = threshold(gray)
+        svg = potrace_trace(binary)
+        root = _parse_svg(svg)
+        assert root.tag == "{http://www.w3.org/2000/svg}svg"
+        ns = {"svg": "http://www.w3.org/2000/svg"}
+        d = root.find("svg:path", ns).get("d", "")
+        assert "M" in d