Context Token Management & Caching
AdvancedManage conversation context to preserve critical information across long interactions · Difficulty 3/5
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