Context Token Management & Caching
AdvancedManage conversation context to preserve critical information across long interactions · Difficulty 3/5
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tokenscachingoptimizationdata-reduction
Prerequisites
Explanation
Tool results accumulate in context and consume tokens disproportionately to their relevance. Prompt Caching and upstream data reduction are key strategies for managing token budgets.
Token Accumulation Problem
A single order lookup may return 40+ fields when only 5 are relevant to the customer's question. Over multiple tool calls in a session, irrelevant fields consume significant context budget.
Solutions
- Trim tool outputs: Keep only return-relevant fields from tool results before they accumulate in context
- Upstream data reduction: Modify upstream agents to return structured data (key facts, citations, relevance scores) instead of verbose content and reasoning chains
- **Prompt Caching**: Cache static system prompts to reduce costs and latency on repeated calls
Prompt Caching
- Mark portions of your prompt as cacheable using cache control headers
- Cache has a TTL that refreshes on each use
- Best for: long system prompts, static documentation, few-shot example sets
- Cache write has a slight premium; cache read provides significant discount
Why Not Other Approaches?
- Vector DB + retrieval: Over-engineered when synthesis needs comprehensive coverage, not selective retrieval
- Intermediate summarization agent: Adds latency and another potential error point
- Fix upstream data volume instead of trying to handle large inputs downstream
Key Takeaways
- Trim verbose tool outputs to only relevant fields before they accumulate in context
- Reduce data volume at the source rather than trying to handle large inputs downstream
- Cache static prompt content to save costs on repeated calls
Glossary Terms
Related Concepts