- In short
- Token-budget exhaustion is an adversarially oversized or padded input that consumes the context or output token budget, silently truncating the model's working context or inflating per-request cost. Truncated context can drop safety-relevant instructions or later conversation turns without the model noticing, so it is a security and reliability failure mode, not merely a cost concern. Length and format limits are typically deterministic checks applied at input screening.
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