Agents, MCP and skillsLoading progress…

Compaction and memory

Write a scoped skill package and manage its instructions and references within a task's context budget.

Compaction and memory

When history grows, compaction replaces older messages with a summary. That frees space (here 900 tokens of old messages become a 110-token summary) but the summary is lossy: details not carried over are gone. Preserve what the task depends on: stable ids, decisions, unresolved issues and pointers to evidence. Then the agent can recover state even though the original wording is not in context.

messages kept verbatim4
1: hello2: order A17 is late3: we will refund A17 ★4: thanks5: also B22 arrived broken6: ship a replacement for B22 ★7: ok8: what is the status?9: A17 refund sent10: great
summarised: 6 older messages (150 tokens each = 900) summary keeps ids [A17, B22] and 2 decision(s) → 110 tokens, saving 790 lost for good: "hello", "thanks"

A summary compresses selected information and loses the rest. Keep stable ids, decisions, open issues and pointers to evidence so the important state can be recovered; do not treat the summary as an archive.

Change how many messages stay verbatim.

Predict first. Is a summary a perfect lossless archive?

Chapter context

A skill packages reusable task instructions and optional supporting material. Context engineering decides which instructions and evidence are available for a particular operation. Loading more text is not automatically better than selecting the right text.

Chapter reference: math, worked example & code

This section belongs to the whole chapter, so it is the same on every lesson in it and may cover a different lesson's topic. The code for the experiment you just ran is inside the experiment itself.

Math and notation

For a synthetic combined budget W, a bookkeeping model is available = W − instructions − history − tool results − reserved output. Actual provider contracts can separate these limits, so use the chosen model's documented accounting when implementing.

Worked example

A synthetic 8192-token budget reserves 1200 for instructions, 2800 for history, 1600 for tool results and 1500 for output. Remaining space is 1092 tokens. A 900-token skill body fits under this model; adding a 2000-token reference does not. The remedy is to select or retrieve the relevant passage rather than silently dropping task constraints.

Reference code

The following example uses the Python standard library and does not call a remote service.

window=8192
used=1200+2800+1600+1500
remaining=window-used
assert remaining == 1092
assert 900 <= remaining
assert 2000 > remaining

Python examples are provided for study and local execution; this page does not execute Python.

Common mistakes

Compaction can lose evidence and constraints. Skill installation is not task authorization. A context limit and a product's memory feature are different mechanisms.