Hello, sorry for this newbie question, but how does the context work, for exemple if we tell the agent to use a markdown file as context, will it really use 100% of that file as context ? does the context reset after each message ? or when creating a new chat ?
File context: When you reference a file with @Files, Cursor includes it in context. If the file is too large, it’s automatically condensed, showing key elements like function signatures. The model can then expand specific parts if needed. See: Summarization | Cursor Docs
Within a chat: Context persists throughout the conversation. As chats get longer, older messages are automatically summarized to make room for new ones.
New chat: Yes, starting a new chat resets the context completely. It’s a clean slate.