diff --git a/api/app.py b/api/app.py
index 32e4554..1aa8908 100644
--- a/api/app.py
+++ b/api/app.py
@@ -409,6 +409,10 @@ ROUTE_ACTION_MAP = {
     ('POST', 'connectivity_configure_sshuttle'): ('connection.exit_sshuttle', 'connection', None),
     ('POST', 'connectivity_configure_proxy'):    ('connection.exit_proxy', 'connection', None),
     ('PUT', 'connectivity_set_peer_exit'):       ('connection.peer_exit_set', 'peer', 'peer_name'),
+    ('POST', 'connectivity_create_connection'):  ('connection.create', 'connection', None),
+    ('PUT', 'connectivity_update_connection'):   ('connection.update', 'connection', 'conn_id'),
+    ('DELETE', 'connectivity_delete_connection'): ('connection.delete', 'connection', 'conn_id'),
+    ('PUT', 'connectivity_set_peer_failopen'):   ('peer.failopen', 'peer', 'peer_name'),
     # egress
     ('PUT', 'egress_set_service_exit'):          ('egress.service_exit_set', 'service', 'service_id'),
     # cells
@@ -867,6 +871,7 @@ def perform_health_check():
 
 def health_monitor_loop():
     _cert_check_cycle = 0
+    _conn_health_cycle = 0
     while health_monitor_running:
         with app.app_context():
             health_result = perform_health_check()
@@ -898,6 +903,15 @@ def health_monitor_loop():
                     caddy_manager.refresh_cert_status()
                 except Exception as _cert_err:
                     logger.warning("Cert status refresh failed (non-fatal): %s", _cert_err)
+            # Refresh connection health every 2 cycles (\u2248 every 2 min) so the
+            # connections list and per-peer fallback decisions stay current.
+            _conn_health_cycle += 1
+            if _conn_health_cycle >= 2:
+                _conn_health_cycle = 0
+                try:
+                    connectivity_manager.refresh_health()
+                except Exception as _ch_err:
+                    logger.warning("Connection health refresh failed (non-fatal): %s", _ch_err)
         time.sleep(60)  # Check every 60 seconds
 
 # Start health monitor thread
@@ -1172,6 +1186,112 @@ def connectivity_get_peer_exits():
         return jsonify({'error': str(e)}), 500
 
 
+# Connectivity v2 — generic connection CRUD (going-forward API; admin-only via
+# enforce_auth which restricts all non-peer /api/* routes to the admin role).
+
+@app.route('/api/connectivity/connections', methods=['GET'])
+def connectivity_list_connections():
+    """List all connection instances (with status; never any secret value)."""
+    try:
+        return jsonify({'connections': connectivity_manager.list_connections()})
+    except Exception as e:
+        logger.error(f"connectivity_list_connections: {e}")
+        return jsonify({'error': str(e)}), 500
+
+
+@app.route('/api/connectivity/connections', methods=['POST'])
+def connectivity_create_connection():
+    """Create a connection instance. Secrets are stored in the vault, never echoed."""
+    try:
+        data = request.get_json(silent=True) or {}
+        conn_type = data.get('type')
+        name = data.get('name')
+        config = data.get('config') or {}
+        conn_secrets = data.get('secrets') or {}
+        if not isinstance(conn_type, str) or not conn_type:
+            return jsonify({'ok': False, 'error': 'type is required'}), 400
+        if not isinstance(name, str) or not name.strip():
+            return jsonify({'ok': False, 'error': 'name is required'}), 400
+        result = connectivity_manager.create_connection(
+            conn_type, name, config=config, secrets=conn_secrets)
+        if result.get('ok'):
+            return jsonify(result), 201
+        return jsonify(result), 400
+    except Exception as e:
+        logger.error(f"connectivity_create_connection: {e}")
+        return jsonify({'error': 'internal error'}), 500
+
+
+@app.route('/api/connectivity/connections/<conn_id>', methods=['PUT'])
+def connectivity_update_connection(conn_id: str):
+    """Update a connection's name, config and/or secrets. Secrets never echoed."""
+    try:
+        data = request.get_json(silent=True) or {}
+        result = connectivity_manager.update_connection(
+            conn_id,
+            name=data.get('name'),
+            config=data.get('config'),
+            secrets=data.get('secrets'),
+        )
+        if result.get('ok'):
+            return jsonify(result)
+        status = 404 if 'not found' in result.get('error', '') else 400
+        return jsonify(result), status
+    except Exception as e:
+        logger.error(f"connectivity_update_connection({conn_id}): {e}")
+        return jsonify({'error': 'internal error'}), 500
+
+
+@app.route('/api/connectivity/connections/<conn_id>', methods=['DELETE'])
+def connectivity_delete_connection(conn_id: str):
+    """Delete a connection. Blocked with 409 when a peer/egress references it."""
+    try:
+        result = connectivity_manager.delete_connection(conn_id)
+        if result.get('ok'):
+            return jsonify(result)
+        error = result.get('error', '')
+        if 'not found' in error:
+            return jsonify(result), 404
+        if 'in use by' in error:
+            return jsonify(result), 409
+        return jsonify(result), 400
+    except Exception as e:
+        logger.error(f"connectivity_delete_connection({conn_id}): {e}")
+        return jsonify({'error': str(e)}), 500
+
+
+@app.route('/api/connectivity/connections/<conn_id>/health', methods=['GET'])
+def connectivity_connection_health(conn_id: str):
+    """On-demand probe of one connection's health (admin)."""
+    try:
+        conn = connectivity_manager.get_connection(conn_id)
+        if conn is None:
+            return jsonify({'error': f'connection {conn_id!r} not found'}), 404
+        health, detail = connectivity_manager.probe_health(conn)
+        return jsonify({'id': conn_id, 'health': health, 'detail': detail})
+    except Exception as e:
+        logger.error(f"connectivity_connection_health({conn_id}): {e}")
+        return jsonify({'error': str(e)}), 500
+
+
+@app.route('/api/connectivity/peers/<peer_name>/failopen', methods=['PUT'])
+def connectivity_set_peer_failopen(peer_name: str):
+    """Set or clear a peer's fail-open override. Body: {"failopen": bool|null}."""
+    try:
+        data = request.get_json(silent=True) or {}
+        failopen = data.get('failopen')
+        if failopen is not None and not isinstance(failopen, bool):
+            return jsonify({'ok': False, 'error': 'failopen must be a boolean or null'}), 400
+        result = connectivity_manager.set_peer_failopen(peer_name, failopen)
+        if result.get('ok'):
+            return jsonify(result)
+        status = 404 if 'not found' in result.get('error', '') else 400
+        return jsonify(result), status
+    except Exception as e:
+        logger.error(f"connectivity_set_peer_failopen({peer_name}): {e}")
+        return jsonify({'error': str(e)}), 500
+
+
 @app.route('/api/caddy/cert-status', methods=['GET'])
 def caddy_cert_status():
     """Return TLS certificate status (expiry, days remaining, domain, mode).
diff --git a/api/connectivity_manager.py b/api/connectivity_manager.py
index 1fb278d..08c2cba 100644
--- a/api/connectivity_manager.py
+++ b/api/connectivity_manager.py
@@ -43,6 +43,7 @@ import logging
 import os
 import re
 import secrets
+import socket
 import threading
 import time
 from typing import Any, Dict, List, Optional, Tuple
@@ -154,6 +155,13 @@ class ConnectivityManager(BaseServiceManager):
     REDIRECT_PORT_BASE = 9100
     REDIRECT_PORT_MAX = 9199
 
+    # WireGuard handshake older than this (seconds) means the tunnel is down.
+    WG_HANDSHAKE_MAX_AGE = 180
+    # Cached health is reused for this long so on-demand GETs don't re-probe.
+    HEALTH_TTL = 30
+    # TCP connect timeout for socket-based probes (sshuttle/proxy).
+    PROBE_TCP_TIMEOUT = 3
+
     IFACE_PREFIXES = {"wireguard_ext": "wgext_", "openvpn": "ovpn_"}
 
     CONNECTION_NAME_RE = re.compile(r'^[A-Za-z0-9][A-Za-z0-9 _.-]{0,63}$')
@@ -1374,7 +1382,16 @@ class ConnectivityManager(BaseServiceManager):
                     f"apply_routes: ip rule {conn.get('id')} failed: {e}")
 
         # Per-peer marking + nat redirect, resolved through each peer's
-        # connection instance.
+        # connection instance. A peer whose connection is unhealthy AND whose
+        # effective fail-open is True is skipped entirely: no mark, so its
+        # traffic falls through to the default route (direct internet) instead
+        # of being blocked by the kill-switch. Fail-closed peers keep their mark
+        # so the kill-switch blocks them while the tunnel is down.
+        #
+        # marked_conn_ids tracks connections that actually have at least one
+        # marked peer, so their kill-switch stays installed; a connection whose
+        # only peers are all fail-open-and-down gets no kill-switch.
+        marked_conn_ids: set = set()
         if self.peer_registry is not None:
             try:
                 peers = self.peer_registry.list_peers()
@@ -1387,18 +1404,27 @@ class ConnectivityManager(BaseServiceManager):
                 conn = self._resolve_peer_connection(peer, by_id)
                 if conn is None:
                     continue
+                if self._peer_fails_open(peer, conn):
+                    logger.info(
+                        f"apply_routes: peer {peer.get('peer')!r} fails open over "
+                        f"down connection {conn.get('id')!r}; skipping mark")
+                    continue
                 src_ip = self._peer_source_ip(peer.get('peer', ''))
                 if not src_ip:
                     continue
                 rules_applied += self._apply_connection_for_src(src_ip, conn)
+                marked_conn_ids.add(conn.get('id'))
 
         # Kill-switch: drop marked packets that would otherwise leak via the
-        # default route if an iface-based exit interface is down.
+        # default route if an iface-based exit interface is down. Installed only
+        # for connections that still have at least one marked peer.
         for conn in connections:
             iface = conn.get('iface')
             mark = conn.get('mark')
             if not iface or not isinstance(mark, int):
                 continue
+            if conn.get('id') not in marked_conn_ids:
+                continue
             try:
                 self._add_killswitch(mark, iface)
                 rules_applied += 1
@@ -1408,6 +1434,20 @@ class ConnectivityManager(BaseServiceManager):
 
         return {'ok': True, 'rules_applied': rules_applied}
 
+    def _peer_fails_open(self, peer: Dict[str, Any],
+                         conn: Dict[str, Any]) -> bool:
+        """True when this peer should fall back to the default route.
+
+        A peer falls back only when its connection is unhealthy (health is
+        explicitly 'down') AND its effective fail-open is True. A 'working' or
+        'unknown' connection always routes normally so a stale/never-probed
+        status never silently drops the tunnel.
+        """
+        health = (conn.get('status') or {}).get('health')
+        if health != 'down':
+            return False
+        return self.effective_failopen(peer, conn)
+
     def _routing_connections(self) -> List[Dict[str, Any]]:
         """Return the connection instances that drive routing (enabled only)."""
         if self.config_manager is None:
@@ -1631,6 +1671,267 @@ class ConnectivityManager(BaseServiceManager):
         except Exception:
             return False
 
+    # ── Health probing ────────────────────────────────────────────────────
+    #
+    # probe_health(connection) returns 'working' | 'down' | 'unknown' per type.
+    # All real subprocess/socket calls are factored behind small helpers
+    # (_exec_in_container, _tcp_reachable) so tests patch those, never raw
+    # subprocess/socket. refresh_health() persists results via
+    # config_manager.set_connection_status and caches them for HEALTH_TTL.
+
+    # Per-type fallback default: tor fails open (direct internet on outage),
+    # all interface/tunnel/proxy types fail closed (traffic blocked on outage).
+    FAILOPEN_DEFAULTS = {
+        "wireguard_ext": False,
+        "openvpn": False,
+        "sshuttle": False,
+        "proxy": False,
+        "tor": True,
+    }
+
+    def probe_health(self, connection: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """Probe a connection's liveness. Returns (health, detail).
+
+        health is 'working' | 'down' | 'unknown'. detail is a short human
+        string (or None). Never raises — probe errors map to ('unknown', msg).
+        """
+        conn_type = connection.get('type')
+        try:
+            if conn_type == 'wireguard_ext':
+                return self._probe_wireguard_ext(connection)
+            if conn_type == 'openvpn':
+                return self._probe_openvpn(connection)
+            if conn_type == 'tor':
+                return self._probe_tor(connection)
+            if conn_type == 'sshuttle':
+                return self._probe_sshuttle(connection)
+            if conn_type == 'proxy':
+                return self._probe_proxy(connection)
+        except Exception as e:
+            logger.warning(f"probe_health({connection.get('id')}): {e}")
+            return 'unknown', str(e)
+        return 'unknown', f'no probe for type {conn_type!r}'
+
+    def _probe_wireguard_ext(
+        self, conn: Dict[str, Any],
+    ) -> Tuple[str, Optional[str]]:
+        """A WireGuard exit is working when its latest handshake is recent."""
+        iface = conn.get('iface')
+        if not iface:
+            return 'unknown', 'no interface assigned'
+        container = self.EXIT_CONTAINERS.get('wireguard_ext')
+        r = self._exec_in_container(
+            container, ['wg', 'show', iface, 'latest-handshakes'])
+        if r is None or r.returncode != 0:
+            return 'down', 'wg show failed or interface absent'
+        newest = 0
+        for line in (r.stdout or '').splitlines():
+            parts = line.split()
+            if len(parts) >= 2:
+                try:
+                    newest = max(newest, int(parts[-1]))
+                except ValueError:
+                    continue
+        if newest == 0:
+            return 'down', 'no handshake yet'
+        age = int(time.time()) - newest
+        if age <= self.WG_HANDSHAKE_MAX_AGE:
+            return 'working', f'handshake {age}s ago'
+        return 'down', f'handshake stale ({age}s ago)'
+
+    def _probe_openvpn(self, conn: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """An OpenVPN exit is working when its tun iface exists and is UP."""
+        iface = conn.get('iface')
+        container = self.EXIT_CONTAINERS.get('openvpn')
+        # The tun device lives in the openvpn container's net namespace.
+        r = self._exec_in_container(container, ['ip', 'link', 'show', iface]) \
+            if iface else None
+        if r is None or r.returncode != 0:
+            # Fall back to the legacy fixed tun0 iface check in the WG container.
+            r2 = self._wg_ip(['link', 'show', self.IFACES.get('openvpn', 'tun0')])
+            if r2.returncode == 0 and 'UP' in (r2.stdout or ''):
+                return 'working', 'tun up'
+            return 'down', 'tun interface absent or down'
+        if 'UP' in (r.stdout or ''):
+            return 'working', 'tun up'
+        return 'down', 'tun interface down'
+
+    def _probe_tor(self, conn: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """Tor is working when its container is running and bootstrapped."""
+        container = self.EXIT_CONTAINERS.get('tor')
+        if not self._container_running(container):
+            return 'down', 'tor container not running'
+        r = self._exec_in_container(
+            container, ['sh', '-c',
+                        'grep -m1 "Bootstrapped 100" /var/log/tor/notices.log '
+                        '2>/dev/null || true'])
+        if r is not None and 'Bootstrapped 100' in (r.stdout or ''):
+            return 'working', 'bootstrapped'
+        # Container is up but bootstrap state is unknown — treat as working
+        # (tor fails open by default; a running container is the cheap signal).
+        return 'working', 'running'
+
+    def _probe_sshuttle(self, conn: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """sshuttle is working when the SSH host AND local listener are reachable."""
+        cfg = conn.get('config', {})
+        host = cfg.get('host')
+        port = cfg.get('port', 22)
+        if not host:
+            return 'unknown', 'no host configured'
+        if not self._tcp_reachable(host, int(port)):
+            return 'down', f'ssh host {host}:{port} unreachable'
+        listen_port = conn.get('redirect_port')
+        container = self.EXIT_CONTAINERS.get('sshuttle')
+        if isinstance(listen_port, int) and not self._listener_reachable(
+                container, listen_port):
+            return 'down', f'sshuttle listener :{listen_port} down'
+        return 'working', 'ssh host + listener reachable'
+
+    def _probe_proxy(self, conn: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """A proxy exit is working when the upstream proxy host:port accepts TCP."""
+        cfg = conn.get('config', {})
+        host = cfg.get('host')
+        port = cfg.get('port')
+        if not host or not port:
+            return 'unknown', 'no upstream host/port configured'
+        if self._tcp_reachable(host, int(port)):
+            return 'working', f'{host}:{port} reachable'
+        return 'down', f'upstream {host}:{port} unreachable'
+
+    def _listener_reachable(self, container: Optional[str], port: int) -> bool:
+        """True when a local TCP listener on `port` is up inside the exit container."""
+        r = self._exec_in_container(
+            container, ['sh', '-c',
+                        f'nc -z -w2 127.0.0.1 {port} 2>/dev/null && echo ok || true'])
+        if r is not None and 'ok' in (r.stdout or ''):
+            return True
+        # Fall back to a host-side probe (container may lack nc).
+        return self._tcp_reachable('127.0.0.1', port)
+
+    def _container_running(self, container: Optional[str]) -> bool:
+        """True when the named container is running (cheap docker inspect)."""
+        if not container:
+            return False
+        try:
+            r = subprocess.run(
+                ['docker', 'inspect', '-f', '{{.State.Running}}', container],
+                capture_output=True, text=True, timeout=5)
+            return r.returncode == 0 and r.stdout.strip() == 'true'
+        except Exception:
+            return False
+
+    def _exec_in_container(
+        self, container: Optional[str], args: List[str], timeout: int = 8,
+    ) -> Optional[subprocess.CompletedProcess]:
+        """Run a command inside a container; None on failure. Mock target for tests."""
+        if not container:
+            return None
+        try:
+            return subprocess.run(
+                ['docker', 'exec', container] + args,
+                capture_output=True, text=True, timeout=timeout)
+        except Exception as e:
+            logger.debug(f"_exec_in_container({container}): {e}")
+            return None
+
+    def _tcp_reachable(self, host: str, port: int) -> bool:
+        """True when a TCP connection to host:port succeeds. Mock target for tests."""
+        try:
+            with socket.create_connection(
+                    (host, port), timeout=self.PROBE_TCP_TIMEOUT):
+                return True
+        except Exception:
+            return False
+
+    def refresh_health(
+        self, connection_id: Optional[str] = None, force: bool = False,
+    ) -> Dict[str, Any]:
+        """Probe one or all connections and persist health into their status.
+
+        With a TTL cache: a connection whose last_check is younger than
+        HEALTH_TTL is skipped unless force=True. Returns {id: health}.
+        """
+        if self.config_manager is None:
+            return {}
+        try:
+            conns = self.config_manager.list_connections()
+        except Exception as e:
+            logger.warning(f"refresh_health: list_connections failed: {e}")
+            return {}
+        if connection_id is not None:
+            conns = [c for c in conns if c.get('id') == connection_id]
+
+        results: Dict[str, Any] = {}
+        now = int(time.time())
+        for conn in conns:
+            cid = conn.get('id')
+            if not cid or not conn.get('enabled', True):
+                continue
+            status = dict(conn.get('status', {}))
+            if not force and self._health_is_fresh(status, now):
+                results[cid] = status.get('health', 'unknown')
+                continue
+            health, detail = self.probe_health(conn)
+            status['health'] = health
+            status['detail'] = detail
+            status['last_check'] = self._now_iso()
+            try:
+                self.config_manager.set_connection_status(cid, status)
+            except Exception as e:
+                logger.warning(f"refresh_health: persist {cid} failed: {e}")
+            results[cid] = health
+        return results
+
+    def _health_is_fresh(self, status: Dict[str, Any], now: int) -> bool:
+        """True when status.last_check is within HEALTH_TTL of `now`.
+
+        last_check is a UTC ISO string (from _now_iso); calendar.timegm parses
+        it back as UTC so the comparison is timezone-consistent with `now`
+        (int(time.time()), also epoch/UTC).
+        """
+        import calendar
+        last = status.get('last_check')
+        if not last:
+            return False
+        try:
+            ts = calendar.timegm(time.strptime(last, '%Y-%m-%dT%H:%M:%SZ'))
+            return (now - int(ts)) < self.HEALTH_TTL
+        except (ValueError, OverflowError):
+            return False
+
+    def effective_failopen(self, peer: Dict[str, Any],
+                           conn: Optional[Dict[str, Any]]) -> bool:
+        """Resolve a peer's effective fail-open for its connection.
+
+        peer.exit_failopen overrides when set (bool); otherwise the per-type
+        default applies. An unknown/missing connection type fails closed.
+        """
+        override = peer.get('exit_failopen')
+        if isinstance(override, bool):
+            return override
+        conn_type = conn.get('type') if conn else None
+        return self.FAILOPEN_DEFAULTS.get(conn_type, False)
+
+    def set_peer_failopen(self, peer_name: str,
+                          failopen: Optional[bool]) -> Dict[str, Any]:
+        """Set or clear a peer's fail-open override (None = use type default)."""
+        if failopen is not None and not isinstance(failopen, bool):
+            return {'ok': False, 'error': 'failopen must be a boolean or null'}
+        if self.peer_registry is None:
+            return {'ok': False, 'error': 'peer_registry not available'}
+        if not self._peer_exists(peer_name):
+            return {'ok': False, 'error': f'peer {peer_name!r} not found'}
+        try:
+            self.peer_registry.update_peer(peer_name, {'exit_failopen': failopen})
+        except Exception as e:
+            logger.error(f"set_peer_failopen({peer_name}): {e}")
+            return {'ok': False, 'error': str(e)}
+        try:
+            self.apply_routes()
+        except Exception as e:
+            logger.warning(f"set_peer_failopen: apply_routes failed (non-fatal): {e}")
+        return {'ok': True, 'peer': peer_name, 'exit_failopen': failopen}
+
     def _peer_source_ip(self, peer_name: str) -> Optional[str]:
         """Return a peer's WireGuard IP (no /CIDR suffix)."""
         if not peer_name or self.peer_registry is None:
diff --git a/tests/test_audit_hook_routes.py b/tests/test_audit_hook_routes.py
index 3f41b0d..7586ce9 100644
--- a/tests/test_audit_hook_routes.py
+++ b/tests/test_audit_hook_routes.py
@@ -110,6 +110,39 @@ def test_unmapped_mutating_endpoint_gets_generic_action(auth_mgr, audit_mgr):
     assert match[0]['target_type'] == 'unknown'
 
 
+# ── connectivity v2 connection routes are audited ─────────────────────────────
+
+def test_connection_create_audited(auth_mgr, audit_mgr):
+    with _client(auth_mgr, audit_mgr, login_as='admin') as c:
+        with patch('app.connectivity_manager') as cm:
+            cm.create_connection.return_value = {'ok': True, 'connection': {'id': 'c'}}
+            c.post('/api/connectivity/connections',
+                   json={'type': 'tor', 'name': 'T'})
+    res = audit_mgr.query({'action': 'connection.create'})
+    assert res['total'] >= 1
+    assert res['entries'][0]['target_type'] == 'connection'
+
+
+def test_connection_delete_audited_with_id(auth_mgr, audit_mgr):
+    with _client(auth_mgr, audit_mgr, login_as='admin') as c:
+        with patch('app.connectivity_manager') as cm:
+            cm.delete_connection.return_value = {'ok': True}
+            c.delete('/api/connectivity/connections/conn_abc')
+    res = audit_mgr.query({'action': 'connection.delete'})
+    assert res['total'] >= 1
+    assert res['entries'][0]['target_id'] == 'conn_abc'
+
+
+def test_peer_failopen_audited(auth_mgr, audit_mgr):
+    with _client(auth_mgr, audit_mgr, login_as='admin') as c:
+        with patch('app.connectivity_manager') as cm:
+            cm.set_peer_failopen.return_value = {'ok': True, 'peer': 'bob'}
+            c.put('/api/connectivity/peers/bob/failopen', json={'failopen': True})
+    res = audit_mgr.query({'action': 'peer.failopen'})
+    assert res['total'] >= 1
+    assert res['entries'][0]['target_id'] == 'bob'
+
+
 # ── auth routes: never write password ─────────────────────────────────────────
 
 def test_change_password_audited_without_value(auth_mgr, audit_mgr):
diff --git a/tests/test_connectivity_api.py b/tests/test_connectivity_api.py
new file mode 100644
index 0000000..b883628
--- /dev/null
+++ b/tests/test_connectivity_api.py
@@ -0,0 +1,331 @@
+"""
+Phase 4 tests for the generic connection CRUD REST API and the per-peer
+fail-open endpoint. Logic lives in ConnectivityManager (mocked here); these
+tests assert the thin route layer: status codes, error mapping (404/409/400),
+that secrets are never echoed, and that admin-only enforcement applies.
+
+The `client` fixture sets TESTING=True (bypassing auth/CSRF) for happy-path
+status-code checks; admin-only enforcement is verified separately against a
+real seeded AuthManager with TESTING off.
+"""
+
+import os
+import sys
+import json
+from pathlib import Path
+from unittest.mock import patch, MagicMock
+
+import pytest
+
+sys.path.insert(0, str(Path(__file__).parent.parent / 'api'))
+
+import app as app_module
+from app import app
+from auth_manager import AuthManager
+
+
+@pytest.fixture
+def client():
+    app.config['TESTING'] = True
+    with app.test_client() as c:
+        yield c
+
+
+# ---------------------------------------------------------------------------
+# GET /api/connectivity/connections
+# ---------------------------------------------------------------------------
+
+class TestListConnections:
+    def test_list_returns_connections_with_status(self, client):
+        cm = MagicMock()
+        cm.list_connections.return_value = [
+            {'id': 'conn_a', 'type': 'proxy', 'name': 'P',
+             'secret_refs': ['conn_a_password'],
+             'status': {'state': 'configured', 'health': 'working'},
+             'config': {'host': 'p', 'port': 3128}},
+        ]
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.get('/api/connectivity/connections')
+        assert resp.status_code == 200
+        body = resp.get_json()
+        assert body['connections'][0]['id'] == 'conn_a'
+        assert body['connections'][0]['status']['health'] == 'working'
+
+    def test_list_never_returns_secret_values(self, client):
+        cm = MagicMock()
+        # _public_record strips secret values; the manager is what enforces it.
+        cm.list_connections.return_value = [
+            {'id': 'conn_a', 'type': 'sshuttle', 'name': 'S',
+             'secret_refs': ['conn_a_private_key'],
+             'config': {'host': 'h', 'user': 'u', 'auth': 'key'},
+             'status': {}},
+        ]
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.get('/api/connectivity/connections')
+        raw = resp.get_data(as_text=True)
+        assert 'PRIVATE KEY' not in raw
+        assert 'private_key' not in json.loads(raw)['connections'][0]['config']
+
+    def test_list_500_on_exception(self, client):
+        cm = MagicMock()
+        cm.list_connections.side_effect = RuntimeError('boom')
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.get('/api/connectivity/connections')
+        assert resp.status_code == 500
+
+
+# ---------------------------------------------------------------------------
+# POST /api/connectivity/connections
+# ---------------------------------------------------------------------------
+
+class TestCreateConnection:
+    def test_create_201_with_record(self, client):
+        cm = MagicMock()
+        cm.create_connection.return_value = {
+            'ok': True, 'connection': {'id': 'conn_x', 'type': 'proxy',
+                                       'secret_refs': []}}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.post('/api/connectivity/connections',
+                               json={'type': 'proxy', 'name': 'My Proxy',
+                                     'config': {'scheme': 'http', 'host': 'p',
+                                                'port': 3128}})
+        assert resp.status_code == 201
+        assert resp.get_json()['connection']['id'] == 'conn_x'
+
+    def test_create_passes_secrets_to_manager(self, client):
+        cm = MagicMock()
+        cm.create_connection.return_value = {'ok': True, 'connection': {'id': 'c'}}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            client.post('/api/connectivity/connections',
+                        json={'type': 'sshuttle', 'name': 'S',
+                              'config': {'host': 'h'},
+                              'secrets': {'private_key': 'SECRET'}})
+        _, kwargs = cm.create_connection.call_args
+        assert kwargs['secrets'] == {'private_key': 'SECRET'}
+
+    def test_create_does_not_echo_secret_value(self, client):
+        cm = MagicMock()
+        cm.create_connection.return_value = {
+            'ok': True, 'connection': {'id': 'c', 'secret_refs': ['c_private_key'],
+                                       'config': {}}}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.post('/api/connectivity/connections',
+                               json={'type': 'sshuttle', 'name': 'S',
+                                     'secrets': {'private_key': 'TOPSECRET'}})
+        assert 'TOPSECRET' not in resp.get_data(as_text=True)
+
+    def test_create_missing_type_400(self, client):
+        resp = client.post('/api/connectivity/connections', json={'name': 'x'})
+        assert resp.status_code == 400
+
+    def test_create_missing_name_400(self, client):
+        resp = client.post('/api/connectivity/connections', json={'type': 'tor'})
+        assert resp.status_code == 400
+
+    def test_create_validation_error_400(self, client):
+        cm = MagicMock()
+        cm.create_connection.return_value = {'ok': False, 'error': 'invalid host'}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.post('/api/connectivity/connections',
+                               json={'type': 'proxy', 'name': 'P', 'config': {}})
+        assert resp.status_code == 400
+        assert 'invalid host' in resp.get_json()['error']
+
+
+# ---------------------------------------------------------------------------
+# PUT /api/connectivity/connections/<id>
+# ---------------------------------------------------------------------------
+
+class TestUpdateConnection:
+    def test_update_200(self, client):
+        cm = MagicMock()
+        cm.update_connection.return_value = {
+            'ok': True, 'connection': {'id': 'conn_a', 'name': 'New'}}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/connections/conn_a',
+                              json={'name': 'New'})
+        assert resp.status_code == 200
+
+    def test_update_not_found_404(self, client):
+        cm = MagicMock()
+        cm.update_connection.return_value = {
+            'ok': False, 'error': "connection 'conn_z' not found"}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/connections/conn_z',
+                              json={'name': 'x'})
+        assert resp.status_code == 404
+
+    def test_update_validation_400(self, client):
+        cm = MagicMock()
+        cm.update_connection.return_value = {'ok': False, 'error': 'invalid name'}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/connections/conn_a',
+                              json={'name': '!!!'})
+        assert resp.status_code == 400
+
+
+# ---------------------------------------------------------------------------
+# DELETE /api/connectivity/connections/<id>
+# ---------------------------------------------------------------------------
+
+class TestDeleteConnection:
+    def test_delete_200(self, client):
+        cm = MagicMock()
+        cm.delete_connection.return_value = {'ok': True}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.delete('/api/connectivity/connections/conn_a')
+        assert resp.status_code == 200
+
+    def test_delete_referenced_409(self, client):
+        cm = MagicMock()
+        cm.delete_connection.return_value = {
+            'ok': False, 'error': "connection is in use by peer 'alice'; detach it first"}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.delete('/api/connectivity/connections/conn_a')
+        assert resp.status_code == 409
+        assert 'in use by' in resp.get_json()['error']
+
+    def test_delete_not_found_404(self, client):
+        cm = MagicMock()
+        cm.delete_connection.return_value = {
+            'ok': False, 'error': "connection 'conn_z' not found"}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.delete('/api/connectivity/connections/conn_z')
+        assert resp.status_code == 404
+
+
+# ---------------------------------------------------------------------------
+# GET /api/connectivity/connections/<id>/health
+# ---------------------------------------------------------------------------
+
+class TestConnectionHealthEndpoint:
+    def test_health_returns_probe_result(self, client):
+        cm = MagicMock()
+        cm.get_connection.return_value = {'id': 'conn_a', 'type': 'proxy'}
+        cm.probe_health.return_value = ('working', 'reachable')
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.get('/api/connectivity/connections/conn_a/health')
+        assert resp.status_code == 200
+        body = resp.get_json()
+        assert body['health'] == 'working'
+        assert body['detail'] == 'reachable'
+
+    def test_health_unknown_connection_404(self, client):
+        cm = MagicMock()
+        cm.get_connection.return_value = None
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.get('/api/connectivity/connections/conn_z/health')
+        assert resp.status_code == 404
+
+
+# ---------------------------------------------------------------------------
+# PUT /api/connectivity/peers/<peer>/failopen
+# ---------------------------------------------------------------------------
+
+class TestSetPeerFailopen:
+    def test_set_true_200(self, client):
+        cm = MagicMock()
+        cm.set_peer_failopen.return_value = {
+            'ok': True, 'peer': 'alice', 'exit_failopen': True}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/peers/alice/failopen',
+                              json={'failopen': True})
+        assert resp.status_code == 200
+        cm.set_peer_failopen.assert_called_once_with('alice', True)
+
+    def test_clear_with_null_200(self, client):
+        cm = MagicMock()
+        cm.set_peer_failopen.return_value = {
+            'ok': True, 'peer': 'alice', 'exit_failopen': None}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/peers/alice/failopen',
+                              json={'failopen': None})
+        assert resp.status_code == 200
+        cm.set_peer_failopen.assert_called_once_with('alice', None)
+
+    def test_non_bool_400(self, client):
+        resp = client.put('/api/connectivity/peers/alice/failopen',
+                          json={'failopen': 'yes'})
+        assert resp.status_code == 400
+
+    def test_unknown_peer_404(self, client):
+        cm = MagicMock()
+        cm.set_peer_failopen.return_value = {
+            'ok': False, 'error': "peer 'ghost' not found"}
+        with patch.object(app_module, 'connectivity_manager', cm):
+            resp = client.put('/api/connectivity/peers/ghost/failopen',
+                              json={'failopen': True})
+        assert resp.status_code == 404
+
+
+# ---------------------------------------------------------------------------
+# admin-only enforcement (mutating connection routes)
+# ---------------------------------------------------------------------------
+
+def _seed_auth(tmp_path):
+    data_dir = str(tmp_path / 'data')
+    config_dir = str(tmp_path / 'config')
+    os.makedirs(data_dir, exist_ok=True)
+    os.makedirs(config_dir, exist_ok=True)
+    mgr = AuthManager(data_dir=data_dir, config_dir=config_dir)
+    mgr.create_user('admin', 'AdminPass123!', 'admin')
+    mgr.create_user('alice', 'AlicePass123!', 'peer')
+    return mgr
+
+
+class TestAdminOnly:
+    def _login(self, c, user, pw):
+        return c.post('/api/auth/login',
+                      data=json.dumps({'username': user, 'password': pw}),
+                      content_type='application/json')
+
+    def test_peer_role_forbidden_on_create(self, tmp_path):
+        auth = _seed_auth(tmp_path)
+        app.config['TESTING'] = False
+        app.config['SECRET_KEY'] = 'test-secret'
+        try:
+            import auth_routes
+            with patch.object(app_module, 'auth_manager', auth), \
+                 patch.object(auth_routes, 'auth_manager', auth, create=True), \
+                 patch.object(app_module.setup_manager, 'is_setup_complete',
+                              return_value=True):
+                with app.test_client() as c:
+                    assert self._login(c, 'alice', 'AlicePass123!').status_code == 200
+                    # CSRF token from session for the mutating request.
+                    with c.session_transaction() as sess:
+                        token = sess.get('csrf_token')
+                    resp = c.post('/api/connectivity/connections',
+                                  json={'type': 'tor', 'name': 'T'},
+                                  headers={'X-CSRF-Token': token or ''})
+            assert resp.status_code == 403
+        finally:
+            app.config['TESTING'] = True
+
+    def test_admin_role_allowed_on_create(self, tmp_path):
+        auth = _seed_auth(tmp_path)
+        cm = MagicMock()
+        cm.create_connection.return_value = {'ok': True, 'connection': {'id': 'c'}}
+        app.config['TESTING'] = False
+        app.config['SECRET_KEY'] = 'test-secret'
+        try:
+            import auth_routes
+            with patch.object(app_module, 'auth_manager', auth), \
+                 patch.object(auth_routes, 'auth_manager', auth, create=True), \
+                 patch.object(app_module, 'connectivity_manager', cm), \
+                 patch.object(app_module.setup_manager, 'is_setup_complete',
+                              return_value=True):
+                with app.test_client() as c:
+                    assert self._login(c, 'admin', 'AdminPass123!').status_code == 200
+                    with c.session_transaction() as sess:
+                        token = sess.get('csrf_token')
+                    resp = c.post('/api/connectivity/connections',
+                                  json={'type': 'tor', 'name': 'T'},
+                                  headers={'X-CSRF-Token': token or ''})
+            assert resp.status_code == 201
+        finally:
+            app.config['TESTING'] = True
+
+
+if __name__ == '__main__':
+    import pytest as _pytest
+    _pytest.main([__file__, '-q'])
diff --git a/tests/test_connectivity_health.py b/tests/test_connectivity_health.py
new file mode 100644
index 0000000..0d7e585
--- /dev/null
+++ b/tests/test_connectivity_health.py
@@ -0,0 +1,453 @@
+"""
+Phase 3 tests for ConnectivityManager — per-connection health probing,
+refresh_health persistence + TTL cache, per-peer configurable fallback
+(exit_failopen + type defaults), and apply_routes fail-open/fail-closed
+behaviour while a connection is DOWN.
+
+All real subprocess/socket access is mocked via the small helper methods
+(_exec_in_container, _tcp_reachable, _container_running, _listener_reachable,
+_wg_ip) so no live infrastructure is touched.
+"""
+
+import os
+import sys
+import shutil
+import tempfile
+import time
+import unittest
+from unittest.mock import MagicMock, patch
+
+sys.path.insert(0, os.path.join(os.path.dirname(__file__), '..', 'api'))
+
+import connectivity_manager as cm_module
+from connectivity_manager import ConnectivityManager
+
+
+def _make_manager(config_manager=None, peer_registry=None, tmp_dir=None):
+    if tmp_dir is None:
+        tmp_dir = tempfile.mkdtemp()
+    if config_manager is None:
+        config_manager = MagicMock()
+        config_manager.get_identity.return_value = {
+            'cell_name': 'test', 'ip_range': '172.20.0.0/16'}
+        config_manager.list_connections.return_value = []
+    if peer_registry is None:
+        peer_registry = MagicMock()
+        peer_registry.list_peers.return_value = []
+    with patch.object(ConnectivityManager, '_subscribe_to_events',
+                      lambda self: None):
+        mgr = ConnectivityManager(
+            config_manager=config_manager,
+            peer_registry=peer_registry,
+            data_dir=tmp_dir,
+            config_dir=tmp_dir,
+        )
+    return mgr
+
+
+def _cp(returncode=0, stdout='', stderr=''):
+    return MagicMock(returncode=returncode, stdout=stdout, stderr=stderr)
+
+
+# ---------------------------------------------------------------------------
+# probe_health per type
+# ---------------------------------------------------------------------------
+
+class TestProbeHealth(unittest.TestCase):
+
+    def setUp(self):
+        self.tmp = tempfile.mkdtemp()
+        self.mgr = _make_manager(tmp_dir=self.tmp)
+
+    def tearDown(self):
+        shutil.rmtree(self.tmp, ignore_errors=True)
+
+    # wireguard_ext ---------------------------------------------------------
+
+    def test_wireguard_recent_handshake_working(self):
+        conn = {'id': 'c1', 'type': 'wireguard_ext', 'iface': 'wgext_a'}
+        recent = str(int(time.time()) - 10)
+        with patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout=f'PUBKEY\t{recent}\n')):
+            health, detail = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    def test_wireguard_stale_handshake_down(self):
+        conn = {'id': 'c1', 'type': 'wireguard_ext', 'iface': 'wgext_a'}
+        stale = str(int(time.time()) - 9999)
+        with patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout=f'PUBKEY\t{stale}\n')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_wireguard_no_handshake_down(self):
+        conn = {'id': 'c1', 'type': 'wireguard_ext', 'iface': 'wgext_a'}
+        with patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout='PUBKEY\t0\n')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_wireguard_exec_fails_down(self):
+        conn = {'id': 'c1', 'type': 'wireguard_ext', 'iface': 'wgext_a'}
+        with patch.object(self.mgr, '_exec_in_container', return_value=None):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_wireguard_no_iface_unknown(self):
+        conn = {'id': 'c1', 'type': 'wireguard_ext', 'iface': None}
+        health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'unknown')
+
+    # openvpn ---------------------------------------------------------------
+
+    def test_openvpn_tun_up_working(self):
+        conn = {'id': 'c2', 'type': 'openvpn', 'iface': 'ovpn_x'}
+        with patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout='5: ovpn_x: <UP,LOWER_UP>')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    def test_openvpn_tun_down(self):
+        conn = {'id': 'c2', 'type': 'openvpn', 'iface': 'ovpn_x'}
+        with patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout='5: ovpn_x: <DOWN>')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_openvpn_falls_back_to_wg_container_tun(self):
+        conn = {'id': 'c2', 'type': 'openvpn', 'iface': 'ovpn_x'}
+        with patch.object(self.mgr, '_exec_in_container', return_value=None), \
+             patch.object(self.mgr, '_wg_ip',
+                          return_value=_cp(stdout='tun0: <UP>')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    # tor -------------------------------------------------------------------
+
+    def test_tor_bootstrapped_working(self):
+        conn = {'id': 'c3', 'type': 'tor'}
+        with patch.object(self.mgr, '_container_running', return_value=True), \
+             patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout='Bootstrapped 100% (done)')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    def test_tor_container_down(self):
+        conn = {'id': 'c3', 'type': 'tor'}
+        with patch.object(self.mgr, '_container_running', return_value=False):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_tor_running_but_no_bootstrap_log_still_working(self):
+        conn = {'id': 'c3', 'type': 'tor'}
+        with patch.object(self.mgr, '_container_running', return_value=True), \
+             patch.object(self.mgr, '_exec_in_container',
+                          return_value=_cp(stdout='')):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    # sshuttle --------------------------------------------------------------
+
+    def test_sshuttle_host_and_listener_working(self):
+        conn = {'id': 'c4', 'type': 'sshuttle', 'redirect_port': 9100,
+                'config': {'host': 'ssh.example.com', 'port': 22}}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True), \
+             patch.object(self.mgr, '_listener_reachable', return_value=True):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    def test_sshuttle_host_unreachable_down(self):
+        conn = {'id': 'c4', 'type': 'sshuttle', 'redirect_port': 9100,
+                'config': {'host': 'ssh.example.com', 'port': 22}}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=False):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_sshuttle_listener_down(self):
+        conn = {'id': 'c4', 'type': 'sshuttle', 'redirect_port': 9100,
+                'config': {'host': 'ssh.example.com', 'port': 22}}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True), \
+             patch.object(self.mgr, '_listener_reachable', return_value=False):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_sshuttle_no_host_unknown(self):
+        conn = {'id': 'c4', 'type': 'sshuttle', 'config': {}}
+        health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'unknown')
+
+    # proxy -----------------------------------------------------------------
+
+    def test_proxy_reachable_working(self):
+        conn = {'id': 'c5', 'type': 'proxy',
+                'config': {'host': 'proxy.example.com', 'port': 3128}}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'working')
+
+    def test_proxy_unreachable_down(self):
+        conn = {'id': 'c5', 'type': 'proxy',
+                'config': {'host': 'proxy.example.com', 'port': 3128}}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=False):
+            health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'down')
+
+    def test_proxy_missing_config_unknown(self):
+        conn = {'id': 'c5', 'type': 'proxy', 'config': {}}
+        health, _ = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'unknown')
+
+    def test_unknown_type_returns_unknown(self):
+        health, _ = self.mgr.probe_health({'id': 'x', 'type': 'bogus'})
+        self.assertEqual(health, 'unknown')
+
+    def test_probe_never_raises(self):
+        conn = {'id': 'c5', 'type': 'proxy',
+                'config': {'host': 'h', 'port': 1}}
+        with patch.object(self.mgr, '_tcp_reachable',
+                          side_effect=RuntimeError('boom')):
+            health, detail = self.mgr.probe_health(conn)
+        self.assertEqual(health, 'unknown')
+        self.assertIn('boom', detail)
+
+
+# ---------------------------------------------------------------------------
+# refresh_health — persistence + TTL cache
+# ---------------------------------------------------------------------------
+
+class TestRefreshHealth(unittest.TestCase):
+
+    def setUp(self):
+        self.tmp = tempfile.mkdtemp()
+        self.conns = [
+            {'id': 'c1', 'type': 'proxy', 'enabled': True,
+             'config': {'host': 'p', 'port': 3128}, 'status': {}},
+        ]
+        self.cm = MagicMock()
+        self.cm.list_connections.return_value = self.conns
+        self.mgr = _make_manager(config_manager=self.cm, tmp_dir=self.tmp)
+
+    def tearDown(self):
+        shutil.rmtree(self.tmp, ignore_errors=True)
+
+    def test_refresh_persists_status(self):
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True):
+            result = self.mgr.refresh_health()
+        self.assertEqual(result['c1'], 'working')
+        self.cm.set_connection_status.assert_called_once()
+        cid, status = self.cm.set_connection_status.call_args.args
+        self.assertEqual(cid, 'c1')
+        self.assertEqual(status['health'], 'working')
+        self.assertIsNotNone(status['last_check'])
+
+    def test_refresh_single_connection_only(self):
+        self.conns.append({'id': 'c2', 'type': 'proxy', 'enabled': True,
+                           'config': {'host': 'p2', 'port': 3128}, 'status': {}})
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True):
+            result = self.mgr.refresh_health(connection_id='c2')
+        self.assertEqual(list(result.keys()), ['c2'])
+
+    def test_ttl_skips_fresh_connections(self):
+        fresh = self.mgr._now_iso()
+        self.conns[0]['status'] = {'health': 'working', 'last_check': fresh}
+        with patch.object(self.mgr, '_tcp_reachable') as tcp:
+            result = self.mgr.refresh_health()
+        tcp.assert_not_called()
+        self.assertEqual(result['c1'], 'working')
+        self.cm.set_connection_status.assert_not_called()
+
+    def test_force_reprobes_even_when_fresh(self):
+        fresh = self.mgr._now_iso()
+        self.conns[0]['status'] = {'health': 'working', 'last_check': fresh}
+        with patch.object(self.mgr, '_tcp_reachable', return_value=False):
+            self.mgr.refresh_health(force=True)
+        self.cm.set_connection_status.assert_called_once()
+
+    def test_disabled_connection_skipped(self):
+        self.conns[0]['enabled'] = False
+        with patch.object(self.mgr, '_tcp_reachable', return_value=True) as tcp:
+            result = self.mgr.refresh_health()
+        tcp.assert_not_called()
+        self.assertEqual(result, {})
+
+
+# ---------------------------------------------------------------------------
+# per-peer fail-open resolution
+# ---------------------------------------------------------------------------
+
+class TestFailopenResolution(unittest.TestCase):
+
+    def setUp(self):
+        self.tmp = tempfile.mkdtemp()
+        self.pr = MagicMock()
+        self.mgr = _make_manager(peer_registry=self.pr, tmp_dir=self.tmp)
+
+    def tearDown(self):
+        shutil.rmtree(self.tmp, ignore_errors=True)
+
+    def test_type_default_tor_fails_open(self):
+        peer = {'peer': 'a'}
+        self.assertTrue(self.mgr.effective_failopen(peer, {'type': 'tor'}))
+
+    def test_type_default_wireguard_fails_closed(self):
+        peer = {'peer': 'a'}
+        self.assertFalse(
+            self.mgr.effective_failopen(peer, {'type': 'wireguard_ext'}))
+
+    def test_override_true_beats_type_default(self):
+        peer = {'peer': 'a', 'exit_failopen': True}
+        self.assertTrue(
+            self.mgr.effective_failopen(peer, {'type': 'wireguard_ext'}))
+
+    def test_override_false_beats_tor_default(self):
+        peer = {'peer': 'a', 'exit_failopen': False}
+        self.assertFalse(self.mgr.effective_failopen(peer, {'type': 'tor'}))
+
+    def test_none_override_uses_type_default(self):
+        peer = {'peer': 'a', 'exit_failopen': None}
+        self.assertTrue(self.mgr.effective_failopen(peer, {'type': 'tor'}))
+
+    def test_set_peer_failopen_updates_peer(self):
+        self.pr.get_peer.return_value = {'peer': 'a'}
+        with patch.object(self.mgr, 'apply_routes', return_value={'ok': True}):
+            result = self.mgr.set_peer_failopen('a', True)
+        self.assertTrue(result['ok'])
+        self.pr.update_peer.assert_called_once_with('a', {'exit_failopen': True})
+
+    def test_set_peer_failopen_clear_with_null(self):
+        self.pr.get_peer.return_value = {'peer': 'a'}
+        with patch.object(self.mgr, 'apply_routes', return_value={'ok': True}):
+            result = self.mgr.set_peer_failopen('a', None)
+        self.assertTrue(result['ok'])
+        self.pr.update_peer.assert_called_once_with('a', {'exit_failopen': None})
+
+    def test_set_peer_failopen_unknown_peer(self):
+        self.pr.get_peer.return_value = None
+        result = self.mgr.set_peer_failopen('ghost', True)
+        self.assertFalse(result['ok'])
+        self.assertIn('not found', result['error'])
+
+    def test_set_peer_failopen_rejects_non_bool(self):
+        self.pr.get_peer.return_value = {'peer': 'a'}
+        result = self.mgr.set_peer_failopen('a', 'yes')
+        self.assertFalse(result['ok'])
+
+
+# ---------------------------------------------------------------------------
+# apply_routes — fail-open / fail-closed under DOWN connections
+# ---------------------------------------------------------------------------
+
+class TestApplyRoutesFallback(unittest.TestCase):
+
+    def setUp(self):
+        self.tmp = tempfile.mkdtemp()
+
+    def tearDown(self):
+        shutil.rmtree(self.tmp, ignore_errors=True)
+
+    def _mgr(self, conns, peers, peer_ips):
+        cm = MagicMock()
+        cm.get_identity.return_value = {'cell_name': 't', 'ip_range': '172.20.0.0/16'}
+        cm.list_connections.return_value = conns
+        pr = MagicMock()
+        pr.list_peers.return_value = peers
+        pr.get_peer.side_effect = lambda n: peer_ips.get(n)
+        return _make_manager(config_manager=cm, peer_registry=pr, tmp_dir=self.tmp)
+
+    def test_down_failopen_peer_skips_mark_and_killswitch(self):
+        conns = [{'id': 'c1', 'type': 'wireguard_ext', 'enabled': True,
+                  'mark': 0x1000, 'table': 1000, 'iface': 'wgext_a',
+                  'redirect_port': None, 'status': {'health': 'down'}}]
+        peers = [{'peer': 'a', 'exit_via': 'c1', 'exit_failopen': True}]
+        ips = {'a': {'peer': 'a', 'ip': '172.20.0.50/32'}}
+        mgr = self._mgr(conns, peers, ips)
+
+        with patch.object(mgr, '_add_mark_rule') as mark, \
+             patch.object(mgr, '_add_killswitch') as ks, \
+             patch.object(cm_module, 'subprocess') as sp:
+            sp.run.return_value = _cp()
+            mgr.apply_routes()
+
+        mark.assert_not_called()
+        ks.assert_not_called()
+
+    def test_down_failclosed_peer_keeps_mark_and_killswitch(self):
+        conns = [{'id': 'c1', 'type': 'wireguard_ext', 'enabled': True,
+                  'mark': 0x1000, 'table': 1000, 'iface': 'wgext_a',
+                  'redirect_port': None, 'status': {'health': 'down'}}]
+        # No override → wireguard_ext default is fail-closed.
+        peers = [{'peer': 'a', 'exit_via': 'c1'}]
+        ips = {'a': {'peer': 'a', 'ip': '172.20.0.50/32'}}
+        mgr = self._mgr(conns, peers, ips)
+
+        with patch.object(mgr, '_add_mark_rule') as mark, \
+             patch.object(mgr, '_add_killswitch') as ks, \
+             patch.object(cm_module, 'subprocess') as sp:
+            sp.run.return_value = _cp()
+            mgr.apply_routes()
+
+        mark.assert_called_once_with('172.20.0.50', 0x1000)
+        ks.assert_called_once_with(0x1000, 'wgext_a')
+
+    def test_working_failopen_peer_routes_normally(self):
+        conns = [{'id': 'c1', 'type': 'wireguard_ext', 'enabled': True,
+                  'mark': 0x1000, 'table': 1000, 'iface': 'wgext_a',
+                  'redirect_port': None, 'status': {'health': 'working'}}]
+        peers = [{'peer': 'a', 'exit_via': 'c1', 'exit_failopen': True}]
+        ips = {'a': {'peer': 'a', 'ip': '172.20.0.50/32'}}
+        mgr = self._mgr(conns, peers, ips)
+
+        with patch.object(mgr, '_add_mark_rule') as mark, \
+             patch.object(mgr, '_add_killswitch') as ks, \
+             patch.object(cm_module, 'subprocess') as sp:
+            sp.run.return_value = _cp()
+            mgr.apply_routes()
+
+        mark.assert_called_once_with('172.20.0.50', 0x1000)
+        ks.assert_called_once_with(0x1000, 'wgext_a')
+
+    def test_unknown_health_routes_normally(self):
+        """A never-probed connection (health unknown) must not silently drop."""
+        conns = [{'id': 'c1', 'type': 'wireguard_ext', 'enabled': True,
+                  'mark': 0x1000, 'table': 1000, 'iface': 'wgext_a',
+                  'redirect_port': None, 'status': {'health': 'unknown'}}]
+        peers = [{'peer': 'a', 'exit_via': 'c1', 'exit_failopen': True}]
+        ips = {'a': {'peer': 'a', 'ip': '172.20.0.50/32'}}
+        mgr = self._mgr(conns, peers, ips)
+
+        with patch.object(mgr, '_add_mark_rule') as mark, \
+             patch.object(cm_module, 'subprocess') as sp:
+            sp.run.return_value = _cp()
+            mgr.apply_routes()
+
+        mark.assert_called_once_with('172.20.0.50', 0x1000)
+
+    def test_mixed_peers_failclosed_keeps_killswitch(self):
+        """When one peer fails open and another fails closed on the same DOWN
+        connection, the fail-closed peer keeps its mark and the killswitch
+        stays so its traffic is blocked while the tunnel is down."""
+        conns = [{'id': 'c1', 'type': 'wireguard_ext', 'enabled': True,
+                  'mark': 0x1000, 'table': 1000, 'iface': 'wgext_a',
+                  'redirect_port': None, 'status': {'health': 'down'}}]
+        peers = [
+            {'peer': 'a', 'exit_via': 'c1', 'exit_failopen': True},
+            {'peer': 'b', 'exit_via': 'c1', 'exit_failopen': False},
+        ]
+        ips = {'a': {'peer': 'a', 'ip': '172.20.0.50/32'},
+               'b': {'peer': 'b', 'ip': '172.20.0.51/32'}}
+        mgr = self._mgr(conns, peers, ips)
+
+        marked = []
+        with patch.object(mgr, '_add_mark_rule',
+                          side_effect=lambda ip, m: marked.append(ip)), \
+             patch.object(mgr, '_add_killswitch') as ks, \
+             patch.object(cm_module, 'subprocess') as sp:
+            sp.run.return_value = _cp()
+            mgr.apply_routes()
+
+        self.assertEqual(marked, ['172.20.0.51'])
+        ks.assert_called_once_with(0x1000, 'wgext_a')
+
+
+if __name__ == '__main__':
+    unittest.main()
diff --git a/webui/src/services/api.js b/webui/src/services/api.js
index 40565d9..67c0ea5 100644
--- a/webui/src/services/api.js
+++ b/webui/src/services/api.js
@@ -381,6 +381,15 @@ export const connectivityAPI = {
   applyRoutes: () => api.post('/api/connectivity/exits/apply'),
   getPeerExits: () => api.get('/api/connectivity/peers'),
   setPeerExit: (peer_name, connection_id) => api.put(`/api/connectivity/peers/${peer_name}/exit`, { connection_id }),
+  // Connectivity v2 — generic connection CRUD + health + per-peer fallback
+  listConnections: () => api.get('/api/connectivity/connections'),
+  createConnection: (type, name, config = {}, secrets = {}) =>
+    api.post('/api/connectivity/connections', { type, name, config, secrets }),
+  updateConnection: (id, fields) => api.put(`/api/connectivity/connections/${id}`, fields),
+  deleteConnection: (id) => api.delete(`/api/connectivity/connections/${id}`),
+  probeConnectionHealth: (id) => api.get(`/api/connectivity/connections/${id}/health`),
+  setPeerFailopen: (peer_name, failopen) =>
+    api.put(`/api/connectivity/peers/${peer_name}/failopen`, { failopen }),
 };
 
 // Container Management API