diff --git a/src/utils/__tests__/classification.test.ts b/src/utils/__tests__/classification.test.ts
new file mode 100644
index 00000000..36091c1f
--- /dev/null
+++ b/src/utils/__tests__/classification.test.ts
@@ -0,0 +1,129 @@
+import { describe, it, expect } from 'vitest';
+import { classifyAtRiskCommitments } from '@/utils/classification';
+import type { Commitment } from '@/lib/types/domain';
+
+const base: Commitment = {
+  id: 'c1',
+  type: 'Balanced',
+  status: 'Active',
+  asset: 'XLM',
+  amount: '1000',
+};
+
+describe('classifyAtRiskCommitments', () => {
+  it('returns empty array when no commitments are at risk', () => {
+    const safe: Commitment = {
+      ...base,
+      complianceScore: 90,
+      daysRemaining: 30,
+      status: 'Active',
+    };
+    const result = classifyAtRiskCommitments([safe], null);
+    expect(result).toHaveLength(0);
+  });
+
+  it('classifies low compliance score (< 70) as low_compliance', () => {
+    const commitment: Commitment = { ...base, complianceScore: 69 };
+    const result = classifyAtRiskCommitments([commitment], null);
+    expect(result).toHaveLength(1);
+    expect(result[0].riskCategories).toContain('low_compliance');
+  });
+
+  it('does not classify compliance score of exactly 70 as low_compliance', () => {
+    const commitment: Commitment = { ...base, complianceScore: 70 };
+    const result = classifyAtRiskCommitments([commitment], null);
+    expect(result).toHaveLength(0);
+  });
+
+  it('classifies daysRemaining <= 7 as maturing_soon', () => {
+    const atBoundary: Commitment = { ...base, daysRemaining: 7 };
+    const justOver: Commitment = { ...base, id: 'c2', daysRemaining: 8 };
+    const resultBoundary = classifyAtRiskCommitments([atBoundary], null);
+    const resultOver = classifyAtRiskCommitments([justOver], null);
+
+    expect(resultBoundary).toHaveLength(1);
+    expect(resultBoundary[0].riskCategories).toContain('maturing_soon');
+    expect(resultOver).toHaveLength(0);
+  });
+
+  it('classifies Violated status as action_required', () => {
+    const commitment: Commitment = { ...base, status: 'Violated' };
+    const result = classifyAtRiskCommitments([commitment], null);
+    expect(result).toHaveLength(1);
+    expect(result[0].riskCategories).toContain('action_required');
+  });
+
+  it('classifies drawdown >= 80% of maxLoss as action_required', () => {
+    const atThreshold: Commitment = {
+      ...base,
+      currentDrawdown: '80',
+      maxLoss: '100',
+    };
+    const belowThreshold: Commitment = {
+      ...base,
+      id: 'c2',
+      currentDrawdown: '79',
+      maxLoss: '100',
+    };
+    const atResult = classifyAtRiskCommitments([atThreshold], null);
+    const belowResult = classifyAtRiskCommitments([belowThreshold], null);
+
+    expect(atResult).toHaveLength(1);
+    expect(atResult[0].riskCategories).toContain('action_required');
+    expect(belowResult).toHaveLength(0);
+  });
+
+  it('handles non-numeric drawdown/maxLoss gracefully', () => {
+    const commitment: Commitment = {
+      ...base,
+      currentDrawdown: 'N/A',
+      maxLoss: '100',
+    };
+    const result = classifyAtRiskCommitments([commitment], null);
+    expect(result).toHaveLength(0);
+  });
+
+  it('assigns multiple risk categories when multiple conditions are met', () => {
+    const commitment: Commitment = {
+      ...base,
+      complianceScore: 50,
+      daysRemaining: 3,
+      status: 'Violated',
+    };
+    const result = classifyAtRiskCommitments([commitment], null);
+    expect(result).toHaveLength(1);
+    expect(result[0].riskCategories).toContain('low_compliance');
+    expect(result[0].riskCategories).toContain('maturing_soon');
+    expect(result[0].riskCategories).toContain('action_required');
+  });
+
+  it('filters out commitments with no risk categories', () => {
+    const commitments: Commitment[] = [
+      { ...base, id: 'c1', complianceScore: 80, daysRemaining: 30, status: 'Active' },
+      { ...base, id: 'c2', complianceScore: 50 },
+      { ...base, id: 'c3', daysRemaining: 5 },
+    ];
+    const result = classifyAtRiskCommitments(commitments, null);
+    expect(result).toHaveLength(2);
+    expect(result.map((r) => r.id)).toEqual(['c2', 'c3']);
+  });
+
+  it('returns empty array for empty input', () => {
+    const result = classifyAtRiskCommitments([], null);
+    expect(result).toHaveLength(0);
+  });
+
+  it('returns exact risk category tokens (pin styling contract)', () => {
+    const low: Commitment = { ...base, complianceScore: 0 };
+    const soon: Commitment = { ...base, id: 'c2', daysRemaining: 0 };
+    const action: Commitment = { ...base, id: 'c3', status: 'Violated' };
+
+    const [lowResult] = classifyAtRiskCommitments([low], null);
+    const [soonResult] = classifyAtRiskCommitments([soon], null);
+    const [actionResult] = classifyAtRiskCommitments([action], null);
+
+    expect(lowResult.riskCategories[0]).toBe('low_compliance');
+    expect(soonResult.riskCategories[0]).toBe('maturing_soon');
+    expect(actionResult.riskCategories[0]).toBe('action_required');
+  });
+});