diff --git a/CONTEXT.md b/CONTEXT.md
index 1f97ff5..0e1d6ae 100644
--- a/CONTEXT.md
+++ b/CONTEXT.md
@@ -25,19 +25,11 @@ My core instructions are:
 The objective is to build a multi-platform chat overlay SaaS (Software as a Service) for streamers. The service will aggregate chat from Twitch and YouTube into a single, customizable browser source for use in streaming software like OBS.
 
 ### Current Status
-The project is in **Phase 1: User Authentication & Database**. Most of this phase is complete.
-*   A solid FastAPI application skeleton is in place.
-*   The database schema (`User`, `Setting` models) is defined using SQLAlchemy and a SQLite database.
-*   A secure Twitch OAuth2 authentication flow is fully functional. It correctly:
-    1.  Redirects users to Twitch.
-    2.  Handles the callback.
-    3.  Exchanges the authorization code for tokens.
-    4.  Fetches user details from the Twitch API.
-    5.  Encrypts the tokens using the `cryptography` library.
-    6.  Saves or updates the user's record in the database.
+**Phases 1, 2, and 3 are complete.** The application is now a fully functional chat overlay service for Twitch.
+*   **Phase 1 (Authentication):** A secure Twitch OAuth2 flow is implemented, with user data and encrypted tokens stored in a SQLite database.
+*   **Phase 2 (Dashboard & Configuration):** A dynamic user dashboard is available after login. It includes a theme switcher (light/dark), a theme selector for the overlay, and a full CRUD system for users to create and manage their own private CSS themes.
+*   **Phase 3 (Real-time Chat):** A decoupled background listener manager successfully starts `twitchio` listeners for each user. A WebSocket manager broadcasts incoming chat messages to the correct user's overlay in real-time.
 *   A basic HTML login page is served at the root URL (`/`).
-*   Configuration and secrets are managed securely via a `config.py` file that reads from a `.env` file.
-
 ### Core Architecture
 The project is built on the "hybrid architecture" detailed in the `RESEARCH_REPORT.md`:
 *   **Authentication:** Always use the official, secure OAuth2 flows for each platform.
@@ -48,13 +40,6 @@ The project is built on the "hybrid architecture" detailed in the `RESEARCH_REPO
 Based on the `TASKS.md` file, the only remaining task for Phase 1 is:
 *   **Task 1.4: Basic Session Management:** After a user successfully logs in, we need to create a persistent session for them. This will allow us to "remember" who is logged in, protect routes like the future `/dashboard`, and provide a seamless user experience. The current flow correctly authenticates the user but does not yet establish this persistent session.
 
-### Dashboard Progress (Phase 2)
-We have started work on Phase 2, focusing on the user dashboard. The following features have been implemented on the `feature/dashboard-ui` branch:
-*   **Dynamic Dashboard:** The dashboard now uses the Jinja2 templating engine to dynamically display the logged-in user's username and their unique overlay URL.
-*   **Theme Selection:** A theme selection dropdown has been added to the dashboard, allowing users to choose between a "Dark Purple" and a "Bright Green" overlay theme.
-*   **Settings API:** A `/api/settings` endpoint has been created. This endpoint handles saving the user's chosen theme to the database.
-*   **Dynamic Overlay Theming:** The `/overlay/{user_id}` endpoint now dynamically loads the correct HTML template based on the user's saved theme preference, providing a personalized overlay.
-
 ## References:
 
 ### Development plan