headroom vs context-mode
headroom: Headroom compresses everything your AI agent reads — tool outputs, logs, RAG chunks, files, and conversation history — before it reaches the LLM. It achieves the same answers with a fraction of the tokens.; context-mode: Every tool call in an MCP (Model-Controller-Program) environment dumps raw data into the context window, quickly consuming space and causing the agent to lose track of ongoing tasks. Context Mode is an MCP server that tackles this by sandboxing tool outputs to significantly reduce context usage, tracking session events in SQLite for continuity, and promoting 'think in code' to minimize data processing within the LLM.
Headroom compresses content before it reaches the model, as a library, proxy or MCP server. Context Mode runs tools in a sandbox and also tracks session state across compaction.
TL;DR
- Long tool output, logs, JSON responses or RAG chunks are driving up cost or hurting answers.
- You want compression without code changes: run it as a local proxy, an MCP server, or by wrapping Claude Code, Codex or Cursor.
- Compression must run locally, with originals cached so the model can retrieve the full text.
- Your agent's problem is missing or outdated docs, not too much context: a docs server fits better.
- You cannot add a component that must keep running and may add latency.
- Your tasks cannot tolerate lossy compression: verify answer quality on your own work first.
- Your sessions fill up with tool output such as Playwright snapshots, GitHub issue lists or logs.
- You want work state (edits, git operations, tasks, decisions) to survive context compaction without being dumped back into the window.
- You use a hook-capable agent, where tool routing happens automatically.
- You need an OSI open-source licence: it uses the Elastic License 2.0, which restricts uses such as offering it as a managed service.
- Your sessions are short and rarely hit the context limit.
- You do not want hooks changing how your agent's tools behave.
Side-by-Side Comparison
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