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Glossary

Chunking

Splitting documents into retrievable pieces before embedding.

What it is

Chunking breaks source documents into passages sized for retrieval and the context window. Chunk size, overlap, and boundaries (semantic vs fixed) strongly affect retrieval quality in a RAG system.

Why it matters in production

Chunking is the highest-leverage RAG knob. Chunks too big dilute relevance and waste tokens; too small lose context. Following document structure (headings, sections) with 10–20% overlap beats fixed character counts almost every time.

In practice

Splitting a handbook by section headings into ~300-token chunks with 15% overlap, keeping source + section metadata on every chunk for citations.

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