Conformal Cascade: Distribution-Free Accuracy Guarantees for Multi-Tier LLM Inference

Model cascades, in which a cheap LLM defers to an expensive one on low-confidence queries, are widely used to navigate the cost-quality tradeoff at deployment. Existing approaches largely treat the deferral threshold as an empirical hyperparameter, with limited guidance on the geometry of the resulting cost-quality frontier over a model pool. We develop a decision-theoretic framework grounded in constrained optimization and duality. For a two-model cascade, we establish piecewise concavity of the cost-quality frontier on decreasing-benefit regions of the confidence support, with reciprocal shadow prices linking the budget- and quality-constrained formulations. Given a pool of $k$ models, we characterize the frontier achievable by deterministic two-model threshold cascades as the pointwise envelope over $\binom{k}{2}$ pairwise cascades, with switching points where the optimal pair changes. For $k$-model cascades, we derive first-order conditions in which a single shadow price equalizes marginal quality-per-cost across stage boundaries. We validate the framework on five benchmarks (MATH, MMLU, TriviaQA, SimpleQA, LiveCodeBench) across eight models from five providers. Within the deterministic threshold-cascade class, full fixed chains underperform the pairwise envelope, and optimized subsequence cascades do not deliver practically meaningful held-out gains over it. A lightweight pre-generation router exceeds the best cascade policy on four of five datasets, mainly because it avoids the cheap model's generation cost on queries sent directly to a larger model rather than because of a stronger routing signal. These results suggest that cascade performance is limited primarily by structural cost, since cascades pay the cheap model before any escalation decision, rather than by a shortage of intermediate stages.

LLM cascades and model routing promise lower inference cost by sending easy queries to a small model and escalating hard ones to a large model, but most deployed routers use uncalibrated confidence scores and require per-workload threshold tuning. We present UCCI, a calibration-first router that maps token-level margin uncertainty to a per-query error probability via isotonic regression and selects the escalation threshold by constrained cost minimization. Under three explicit assumptions, threshold policies on the calibrated score are cost-optimal, and isotonic calibration achieves O(n^{-1/3}) sample complexity for expected calibration error (ECE). On a production named entity recognition workload of 75,000 queries served by 4B and 12B instruction-tuned LLMs on H100 GPUs, UCCI cuts inference cost by 31% (95% CI: [27%, 35%]) at micro-F1 = 0.91 while reducing ECE from 0.12 to 0.03. At the same operating point, UCCI beats entropy thresholding, split-conformal routing, and a FrugalGPT-style learned threshold. All cascade results use end-to-end routing on actual model outputs and measured H100 latency, not simulated routing from global accuracies or nominal API prices.

Large language model (LLM) cascades answer easy requests with a small model and escalate selected requests to a larger model. Most routers prioritize examples on which the small model appears uncertain or likely to be wrong. This proxy ignores a decisive fact: escalation is useful only when the large model corrects the small model, and it is harmful when the large model replaces a correct answer with an incorrect one. We introduce Signed Rescue Routing (SRR), a budgeted routing method that predicts these two events separately and ranks requests by their difference. We show that this signed conditional gain is the Bayes-optimal routing score under a fixed escalation budget. SRR requires only the small model's output statistics at deployment and adds a lightweight two-head router. We evaluate SRR with Qwen3-4B and Qwen3-8B on TBD examples from MMLU, HellaSwag, and ARC-Challenge. Across the accuracy-compute curve, SRR reaches an area of TBD, compared with TBD for a learned small-model error predictor and TBD for entropy routing. These results show that predicting incremental value, rather than model uncertainty, is a simple and effective objective for efficient LLM cascades.