diff --git a/src/proxy/xai.ts b/src/proxy/xai.ts
index 9d65a58..fd1078e 100644
--- a/src/proxy/xai.ts
+++ b/src/proxy/xai.ts
@@ -1,77 +1,156 @@
-import { Request, RequestHandler, Router } from "express";
-import { createPreprocessorMiddleware } from "./middleware/request";
-import { ipLimiter } from "./rate-limit";
-import { createQueuedProxyMiddleware } from "./middleware/request/proxy-middleware-factory";
-import { addKey, finalizeBody } from "./middleware/request";
-import { ProxyResHandlerWithBody } from "./middleware/response";
-
-const xaiResponseHandler: ProxyResHandlerWithBody = async (
-  _proxyRes,
-  req,
-  res,
-  body
-) => {
-  if (typeof body !== "object") {
-    throw new Error("Expected body to be an object");
-  }
-
-  let newBody = body;
-
-  res.status(200).json({ ...newBody, proxy: body.proxy });
-};
-
-const handleModelRequest: RequestHandler = (_req, res) => {
-  res.status(200).json({
-    object: "list",
-    data: [
-      { id: "grok-2-1212", object: "model", owned_by: "xai" },
-      { id: "grok-beta", object: "model", owned_by: "xai" },
-      { id: "grok-3", object: "model", owned_by: "xai"},
-      { id: "grok-3-fast", object: "model", owned_by: "xai"},
-      { id: "grok-3-mini", object: "model", owned_by: "xai"},
-      { id: "grok-3-mini-fast", object: "model", owned_by: "xai"},
-    ],
-  });
-};
-
-const xaiProxy = createQueuedProxyMiddleware({
-  mutations: [addKey, finalizeBody],
-  target: "https://api.x.ai",
-  blockingResponseHandler: xaiResponseHandler,
-});
-
-const xaiRouter = Router();
-
-// combines all the assistant messages at the end of the context and adds the
-// beta 'prefix' option, makes prefills work the same way they work for Claude
-function enablePrefill(req: Request) {
-  // If you want to disable
-  if (process.env.NO_XAI_PREFILL) return
-  
-  const msgs = req.body.messages;
-  if (msgs.at(-1)?.role !== 'assistant') return;
-
-  let i = msgs.length - 1;
-  let content = '';
-  
-  while (i >= 0 && msgs[i].role === 'assistant') {
-    // maybe we should also add a newline between messages? no for now.
-    content = msgs[i--].content + content;
-  }
-  
-  msgs.splice(i + 1, msgs.length, { role: 'assistant', content, prefix: true });
-}
-
-xaiRouter.post(
-  "/v1/chat/completions",
-  ipLimiter,
-  createPreprocessorMiddleware(
-    { inApi: "openai", outApi: "openai", service: "xai" },
-    { afterTransform: [ enablePrefill ] }
-  ),
-  xaiProxy
-);
-
-xaiRouter.get("/v1/models", handleModelRequest);
-
+import { Request, RequestHandler, Router } from "express";
+import { createPreprocessorMiddleware } from "./middleware/request";
+import { ipLimiter } from "./rate-limit";
+import { createQueuedProxyMiddleware } from "./middleware/request/proxy-middleware-factory";
+import { addKey, finalizeBody } from "./middleware/request";
+import { ProxyResHandlerWithBody } from "./middleware/response";
+import axios from "axios";
+import { XaiKey, keyPool } from "../shared/key-management";
+
+let modelsCache: any = null;
+let modelsCacheTime = 0;
+
+const xaiResponseHandler: ProxyResHandlerWithBody = async (
+  _proxyRes,
+  req,
+  res,
+  body
+) => {
+  if (typeof body !== "object") {
+    throw new Error("Expected body to be an object");
+  }
+
+  let newBody = body;
+
+  res.status(200).json({ ...newBody, proxy: body.proxy });
+};
+
+const getModelsResponse = async () => {
+  // Return cache if less than 1 minute old
+  if (new Date().getTime() - modelsCacheTime < 1000 * 60) {
+    return modelsCache;
+  }
+
+  try {
+    // Get an XAI key directly using keyPool.get()
+    const modelToUse = "grok-3"; // Use any XAI model here - just for key selection
+    const xaiKey = keyPool.get(modelToUse, "xai") as XaiKey;
+    
+    if (!xaiKey || !xaiKey.key) {
+      throw new Error("Failed to get valid XAI key");
+    }
+
+    // Fetch models from XAI API with authorization
+    const response = await axios.get("https://api.x.ai/v1/models", {
+      headers: {
+        "Content-Type": "application/json",
+        "Authorization": `Bearer ${xaiKey.key}`
+      },
+    });
+
+    // If successful, update the cache
+    if (response.data && response.data.data) {
+      modelsCache = {
+        object: "list",
+        data: response.data.data.map((model: any) => ({
+          id: model.id,
+          object: "model",
+          owned_by: "xai",
+        })),
+      };
+    } else {
+      throw new Error("Unexpected response format from XAI API");
+    }
+  } catch (error) {
+    console.error("Error fetching XAI models:", error);
+    throw error; // No fallback - error will be passed to caller
+  }
+
+  modelsCacheTime = new Date().getTime();
+  return modelsCache;
+};
+
+const handleModelRequest: RequestHandler = async (_req, res) => {
+  try {
+    const modelsResponse = await getModelsResponse();
+    res.status(200).json(modelsResponse);
+  } catch (error) {
+    console.error("Error in handleModelRequest:", error);
+    res.status(500).json({ error: "Failed to fetch models" });
+  }
+};
+
+const xaiProxy = createQueuedProxyMiddleware({
+  mutations: [addKey, finalizeBody],
+  target: "https://api.x.ai",
+  blockingResponseHandler: xaiResponseHandler,
+});
+
+const xaiRouter = Router();
+
+// combines all the assistant messages at the end of the context and adds the
+// beta 'prefix' option, makes prefills work the same way they work for Claude
+function enablePrefill(req: Request) {
+  // If you want to disable
+  if (process.env.NO_XAI_PREFILL) return
+  
+  const msgs = req.body.messages;
+  if (msgs.at(-1)?.role !== 'assistant') return;
+
+  let i = msgs.length - 1;
+  let content = '';
+  
+  while (i >= 0 && msgs[i].role === 'assistant') {
+    // maybe we should also add a newline between messages? no for now.
+    content = msgs[i--].content + content;
+  }
+  
+  msgs.splice(i + 1, msgs.length, { role: 'assistant', content, prefix: true });
+}
+
+// Function to remove parameters not supported by X.AI/Grok models
+function removeUnsupportedParameters(req: Request) {
+  const model = req.body.model;
+  
+  // Check if this is a grok-3-mini variant
+  // This will match grok-3-mini, grok-3-mini-fast, grok-3-mini-beta, grok-3-mini-fast-beta, etc.
+  const isGrok3Mini = /^grok-3-mini(-[a-z]+)*(-beta)?$/.test(model);
+  
+  if (isGrok3Mini) {
+    // List of parameters not supported by Grok-3-mini models
+    const unsupportedParams = [
+      'presence_penalty',
+      'frequency_penalty'
+    ];
+    
+    for (const param of unsupportedParams) {
+      if (req.body[param] !== undefined) {
+        req.log.info(`Removing unsupported parameter for Grok-3-mini model: ${param}`);
+        delete req.body[param];
+      }
+    }
+    
+    // Support reasoning_effort parameter
+    if (req.body.reasoning_effort) {
+      // If reasoning_effort is already present in the request, validate it
+      if (!['low', 'medium', 'high'].includes(req.body.reasoning_effort)) {
+        req.log.warn(`Invalid reasoning_effort value: ${req.body.reasoning_effort}, removing it`);
+        delete req.body.reasoning_effort;
+      }
+    }
+  }
+}
+
+xaiRouter.post(
+  "/v1/chat/completions",
+  ipLimiter,
+  createPreprocessorMiddleware(
+    { inApi: "openai", outApi: "openai", service: "xai" },
+    { afterTransform: [ enablePrefill, removeUnsupportedParameters ] }
+  ),
+  xaiProxy
+);
+
+xaiRouter.get("/v1/models", handleModelRequest);
+
 export const xai = xaiRouter;
\ No newline at end of file