server {
    listen 80;
    server_name localhost;

    root /usr/share/nginx/html;
    index index.html;

    # Gzip compression
    gzip on;
    gzip_types text/plain text/css application/json application/javascript text/xml application/xml application/xml+rss text/javascript;

    # Proxy API requests to backend
    location /api/ {
        proxy_pass http://backend:8000/api/;
        proxy_http_version 1.1;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
    }

    # Proxy WebSocket connections to backend
    location /ws {
        proxy_pass http://backend:8000/ws;
        proxy_http_version 1.1;
        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection "upgrade";
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
        proxy_read_timeout 86400;
    }

    # Proxy health check to backend
    location /health {
        proxy_pass http://backend:8000/health;
        proxy_http_version 1.1;
        proxy_set_header Host $host;
    }

    location / {
        try_files $uri $uri/ /index.html;
    }

    # Cache static assets
    location ~* \.(js|css|png|jpg|jpeg|gif|ico|svg|woff|woff2|ttf|eot)$ {
        expires 1y;
        add_header Cache-Control "public, immutable";
    }

    # Security headers
    add_header X-Frame-Options "SAMEORIGIN" always;
    add_header X-Content-Type-Options "nosniff" always;
    add_header X-XSS-Protection "1; mode=block" always;
}