Guides
Enable Context Compression

Enable Context Compression

Reduce token costs by 50-90% by compressing prompts before they reach the LLM.

Prerequisites

  • A Xilos account with admin (SuperAdmin) access
  • At least one routing rule configured

Step 1: Enable Compression at the Organization Level

  1. Navigate to SuperAdmin > Model Config.
  2. Scroll to the Compression section.
  3. Toggle Compression Enabled on.
  4. Set the Compression Target Ratio (default: 0.5 — compress to 50% of original).
  5. Set the Compression Token Threshold (default: 2000 — compression activates only when the prompt exceeds 2000 tokens).
  6. Click Save.

Info: The token threshold prevents compression from activating on short queries. Only prompts exceeding the threshold are compressed.

Step 2: Enable Per-Rule Compression (Optional)

Each routing rule can override the organization setting:

  1. Navigate to Routing Rules.
  2. Edit the rule (create a new one if rules cannot be edited — see Create a Routing Rule).
  3. Toggle compression on or off for this rule.
  4. Save the rule.

When to enable per-rule:

  • Enable for rules with long conversation histories
  • Enable for rules with high token costs
  • Disable for rules where full-fidelity context is critical

Step 3: Monitor Savings

After enabling compression, monitor the results:

  1. Navigate to Dashboard > Cost Controls.

  2. Look for the Compression Savings section.

  3. Track:

    • Total tokens saved
    • Dollar value of saved tokens
    • Average compression ratio
    • Compression rate (percentage of queries compressed)
  4. Check the Query Log to see per-query compression stats:

    • Original token count
    • Compressed token count
    • Compression ratio applied

How the Three Strategies Work

Xilos applies three compression strategies in sequence:

Prefix Stabilizer

Stabilizes the system prompt prefix so semantic cache lookups are more likely to match. This improves cache hit rates by 15-30%.

Conversation Summarizer

Summarizes long conversation histories into a compact summary. A 20-message conversation can be reduced to a single summary paragraph.

Content Extractor (BM25)

Uses BM25 ranking to extract the most relevant sentences from the prompt. Irrelevant content is removed while preserving query intent.

Performance Impact

  • Latency: Compression adds under 50ms (local, CPU-based, zero external calls)
  • Quality: The summarizer and BM25 extractor preserve query intent
  • Cache improvement: Prefix stabilization improves cache hit rates

Best Practices

  • Start with the default threshold (2000 tokens)
  • Monitor quality — if responses degrade, increase the target ratio
  • Enable per-rule for high-volume rules with long contexts
  • Disable for rules where exact context is critical (e.g., code review, legal analysis)
  • Check the Suggestions page for compression optimization recommendations