function gradeParlayFromLegs(legResults, correlationFlags) {
  if (legResults.length === 0) {
    return { grade: 'D', confidence: 30, composite: 0 };
  }

  // Extract leg composites and grades
  const legComposites = legResults.map((l) => l._composite || 0);
  const legGrades = legResults.map((l) => l.grade);
  const legConfidences = legResults.map((l) => l.confidence);
  const dCount = legGrades.filter((g) => g === 'D').length;

  // Average of leg composites
  const legAvg = legComposites.reduce((a, b) => a + b, 0) / legComposites.length;

  // Correlation penalties
  let correlationPenalty = 0;
  let hasMajorNegative = false;
  for (const flag of correlationFlags) {
    if (flag.impact === 'minor_negative') correlationPenalty -= 0.3;
    if (flag.impact === 'major_negative') {
      correlationPenalty -= 1.0;
      hasMajorNegative = true;
    }
  }

  const parlayComposite = legAvg + correlationPenalty;

  // Grade assignment
  let grade;
  if (parlayComposite >= 2.5 && dCount === 0 && !hasMajorNegative) {
    grade = 'A';
  } else if (parlayComposite >= 1.5 && dCount <= 1) {
    grade = 'B';
  } else if (parlayComposite >= 0.5) {
    grade = 'C';
  } else {
    grade = 'D';
  }

  // 2+ D legs forces grade D
  if (dCount >= 2) grade = 'D';

  // Major negative caps at B
  if (hasMajorNegative && (grade === 'A')) {
    grade = 'B';
  }

  // Confidence: average of legs, adjusted for correlations
  let confidence = legConfidences.reduce((a, b) => a + b, 0) / legConfidences.length;
  for (const flag of correlationFlags) {
    if (flag.impact === 'minor_negative') confidence -= 5;
    if (flag.impact === 'major_negative') confidence -= 15;
  }
  confidence = Math.max(30, Math.min(95, Math.round(confidence)));

  return {
    grade,
    confidence,
    composite: Math.round(parlayComposite * 100) / 100,
  };
}

module.exports = { gradeParlayFromLegs };