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HYDROT RAG Pipeline

A production-ready Retrieval-Augmented Generation (RAG) system designed for enterprise documentation, with first-class support for markdown content. Built with a microservices architecture for horizontal scaling and flexibility.

๐Ÿ—๏ธ Architecture Overview

This system implements a sophisticated multi-stage processing pipeline that transforms raw documents into a searchable knowledge base capable of answering complex queries.

Key Features

  • ๐Ÿ”„ Asynchronous Processing: Queue-based architecture enables horizontal scaling and fault tolerance
  • ๐Ÿ“š Multi-format Support: Handles markdown, images, tables, code blocks, and lists
  • ๐Ÿงฉ Intelligent Chunking: Context-aware chunking with configurable overlap for optimal retrieval
  • ๐Ÿ” Vector Search: OpenSearch-powered semantic search with token budget management
  • โšก Real-time Inference: Ollama integration for local LLM inference
  • ๐Ÿณ Production Ready: Complete Docker Compose setup with health checks
  • ๐Ÿงช Comprehensive Testing: Unit and integration tests across all components

๐Ÿš€ Quick Start

Prerequisites

  • Docker & Docker Compose
  • 8GB+ RAM (for Ollama models)
  • 2GB+ free disk space

1. Clone and Setup

git clone <your-repo>
cd universal-rag-pipeline
cp .env.example .env

2. Configure Environment

# .env
DATABASE_PATH=data/records.db

AZURE_STORAGE_CONNECTION_STRING="<storage_connection_string>"
AZURE_QUEUE_CONNECTION_STRING="<queue_connection_string>"

SUBMISSION_QUEUE=job-submission
EXTRACTION_QUEUE=job-extraction
CHUNKING_QUEUE=job-chunking

SEARCH_HOST=opensearch
SEARCH_PORT=9200
SEARCH_INDEX=chunks-index
SEARCH_ADMIN_PASSWORD=Hydrot123456!

EMBEDDING_QUEUE=job-embedding
EMBEDDING_BASE_URL=http://ollama:11434
EMBEDDING_MODEL=nomic-embed-text
EMBEDDING_DIM=768

INFERENCE_QUEUE=job-inference
INFERENCE_BASE_URL=http://ollama:11434
INFERENCE_TIMEOUT=60
INFERENCE_SYSTEM_PROMPT="You are a helpful assistant."

INFERENCE_MODEL=gemma3:270m

3. Launch the System

docker-compose up -d

This will start:

  • API Server (FastAPI) on http://localhost:8000
  • OpenSearch on http://localhost:9200
  • OpenSearch Dashboards on http://localhost:5601
  • Ollama on http://localhost:11434
  • 5 Worker Processes for pipeline stages
  • Azurite (local Azure Storage emulator)

4. Process Your First Document

# 1. Upload a markdown file to blob storage
curl -X PUT "http://localhost:10000/devstoreaccount1/test-docs/sample.md" \
  -H "x-ms-blob-type: BlockBlob" \
  --data-binary @your-document.md

# 2. Submit processing job
curl -X POST "http://localhost:8000/jobs/?source_container=test-docs"
# Returns: job_id

# 3. Ask questions about your document
curl -X POST "http://localhost:8000/inferences/?query=What is the main topic?&model=gemma2:2b"
# Returns: inference_id

# 4. Get the answer
curl "http://localhost:8000/inferences/{inference_id}"

๐Ÿ“‹ API Reference

Document Processing

POST /jobs/?source_container={container_name}

Submits documents for processing through the RAG pipeline.

Response: Job ID for tracking progress

Question Answering

POST /inferences/?query={question}&model={model_name}
GET /inferences/{inference_id}
POST /inferences/{inference_id}/cancel

Supported Models:

  • gpt-oss:20b - Fast, efficient model for general questions
  • gemma3:270m - Lightweight model for simple queries

๐Ÿ”ง Pipeline Stages

1. Extraction Worker

  • Parses markdown into structured format
  • Extracts headers, paragraphs, code blocks, tables, images
  • Preserves semantic structure and metadata
  • Uses spaCy for sentence segmentation

2. Chunking Worker

  • Intelligent context-aware chunking
  • Configurable chunk size and overlap
  • Preserves semantic boundaries
  • Token-based budgeting with approximation

3. Embedding Worker

  • Batch processing for efficiency
  • L2 normalization for consistent vectors
  • Error handling for malformed embeddings
  • Configurable embedding models via Ollama

4. Inference Worker

  • Context-aware query processing
  • Token budget management per model
  • Configurable system prompts
  • Support for multiple LLM backends

๐Ÿ—๏ธ Technical Architecture

Design Principles

  1. Horizontal Scalability: Each worker can be scaled independently
  2. Fault Tolerance: Queue-based processing with retry mechanisms
  3. Modularity: Provider pattern for swappable components
  4. Observability: Structured logging throughout the pipeline

Data Flow

graph TD
    A[Document Upload] --> B[Submission Queue]
    B --> C[Extraction Worker]
    C --> D[Extraction Queue]
    D --> E[Chunking Worker]
    E --> F[Chunking Queue]
    F --> G[Embedding Worker]
    G --> H[Vector Database]

    I[User Query] --> J[Inference Queue]
    J --> K[Inference Worker]
    K --> H
    K --> L[LLM Provider]
    L --> M[Generated Answer]
Loading

Storage Architecture

  • Azure Blob Storage: Document storage with container isolation per job
  • OpenSearch: Vector database with KNN search capabilities
  • SQLite: Job and inference state management
  • Azure Queue Storage: Asynchronous message passing

โšก Performance Characteristics

Throughput Benchmarks

Stage Processing Rate Bottleneck
Extraction ~100 MD files/min CPU (spaCy)
Chunking ~1000 chunks/min CPU (tokenization)
Embedding ~500 chunks/min GPU/Model size
Inference ~10 queries/min LLM generation

Scaling Considerations

  • CPU-bound stages: Extraction, Chunking (scale horizontally)
  • Memory-bound stages: Embedding (optimize batch sizes)
  • I/O-bound stages: Storage operations (connection pooling)

๐Ÿ” Advanced Features

Intelligent Chunking Strategy

  • Semantic Boundary Preservation: Respects paragraph and section boundaries
  • Configurable Overlap: Prevents context loss at chunk boundaries
  • Token Budget Management: Optimizes for model context windows
  • Content-Type Awareness: Special handling for code, tables, lists

Vector Search Optimization

  • Candidate Pool Strategy: Over-retrieval followed by token-based filtering
  • Score-based Ranking: Maintains relevance while respecting budget constraints
  • Dynamic Context Sizing: Adapts to different model capabilities

Production Monitoring

  • Health Checks: All services include health endpoints
  • Structured Logging: JSON logs with correlation IDs
  • Error Tracking: Comprehensive exception handling
  • Performance Metrics: Processing time and throughput tracking

๐Ÿงช Testing

Run Test Suite

# Unit tests
pytest tests/ -v

# Integration tests (requires running services)
pytest tests/ -m integration -v

# Coverage report
pytest --cov=backend tests/

Test Structure

  • Unit Tests: Individual component testing with mocks
  • Integration Tests: End-to-end pipeline validation
  • Fixtures: Reusable test infrastructure for Azure Storage

๐Ÿš€ Deployment Options

Local Development

docker-compose up -d

Production Considerations

Scaling Strategy:

  • Deploy workers as separate pods/containers
  • Use managed services (Azure OpenAI, Azure Cognitive Search)
  • Implement auto-scaling based on queue depth

Security:

  • Replace Azurite with production Azure Storage
  • Add authentication (OAuth2/JWT)
  • Implement proper secret management
  • Network isolation and firewall rules

Monitoring:

  • Prometheus metrics collection
  • Grafana dashboards
  • Azure Application Insights integration
  • Alert rules for queue backlogs and failures

๐Ÿ”ฎ Roadmap

Phase 1: Enhanced Features

  • Pre-clean: remove or redact secrets; extract images and write assets to blob store; perform OCR on images and add OCR text as additional text paragraphs.
  • Refactoring idea: embedder and indexer could be included in single abstraction to improve maintainability of the main workflow, since embedding and indexing are closely related operations.
  • Consider deterministic document id (content hash + chunk position) for index records in order to avoid index duplications.
  • Store supported models metadata in the database, including model names, and context lengths.
  • Multi-modal support (images, PDFs, Office docs)
  • Hybrid search (semantic + keyword)
  • Query expansion and rewriting
  • Citation tracking in responses

Phase 2: Enterprise Features

  • Multi-tenant support
  • Advanced security (RBAC, audit logs)
  • Real-time document sync
  • Analytics dashboard

Phase 3: AI/ML Enhancements

  • Active learning for relevance feedback
  • Automated evaluation metrics (RAGAS)
  • Query intent classification
  • Personalized retrieval

๐Ÿ›๏ธ Project Structure

โ”œโ”€โ”€ backend/
โ”‚   โ”œโ”€โ”€ api/                    # FastAPI routes
โ”‚   โ”œโ”€โ”€ config/                 # Settings and DI
โ”‚   โ”œโ”€โ”€ models/                 # Data models
โ”‚   โ”œโ”€โ”€ providers/              # External service abstractions
โ”‚   โ”œโ”€โ”€ repositories/           # Data access layer
โ”‚   โ”œโ”€โ”€ services/               # Business logic
โ”‚   โ””โ”€โ”€ workers/                # Background processors
โ”œโ”€โ”€ tests/                      # Comprehensive test suite
โ”œโ”€โ”€ data/                       # Local storage (gitignored)
โ”œโ”€โ”€ docker-compose.yaml         # Multi-service orchestration
โ””โ”€โ”€ requirements.txt            # Python dependencies

๐ŸŽฏ Technical Highlights

For Engineering Interviews:

  1. Distributed Systems: Demonstrates understanding of queue-based architectures, eventual consistency, and horizontal scaling

  2. AI/ML Engineering: Shows practical knowledge of embedding models, vector databases, and LLM integration

  3. Software Architecture: Clean abstractions, dependency injection, and separation of concerns

  4. DevOps Skills: Docker containerization, service orchestration, and local development setup

  5. Testing Excellence: Comprehensive test coverage with proper mocking and integration testing

๐Ÿค Contributing

This project demonstrates enterprise-grade software engineering practices suitable for production RAG systems. The modular architecture allows for easy extension and customization.

Key Extension Points:

  • BaseEmbeddingProvider: Add new embedding models
  • BaseInferenceProvider: Integrate different LLM providers
  • BaseStorageProvider: Support additional storage backends
  • BaseIndexProvider: Implement alternative vector databases

Built with modern Python ecosystem: FastAPI, Pydantic, Docker, OpenSearch, Ollama

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A production-ready Retrieval-Augmented Generation (RAG) system designed for enterprise documentation, with first-class support for markdown content. Built with a microservices architecture for horizontal scaling and flexibility.

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