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Equation 2 · Building on Frontier Model APIs: Effort, Context, Caching, and Failure Handling

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α\alpha

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the discount applied to cached prefix tokens. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.

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α\alpha

Symbol α

the discount applied to cached prefix tokens.

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where α\alpha is the discount applied to cached prefix tokens. Three things become obvious the moment it is written this way.

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