Delegation depth is the number of handoffs between the agent that receives the user request and the agent that does the work. An orchestrator that spawns a worker is one level. That worker spawning a checker is two. Every level is a full model conversation with its own system prompt and its own context window, and the only data that crosses the boundary is the prompt going down and the summary coming back up (the orchestration guide).
That isolation is the point. Pushing noisy work (log greps, file scans, search results) into a child window keeps the parent's context lean, so decisions happen in a clean window rather than one polluted by intermediate output (the nested subagent guide). But it also means each hop is a separate opportunity to lose context, drift from the objective, or fail silently.
The economics compound. Anthropic's engineering team measured that agentic systems use roughly 4x the tokens of chat interactions, and a multi-agent research system used about 15x, with token usage explaining 80% of performance variance on BrowseComp (the cost analysis). That figure covers fan-out at one level. Nesting adds dispatch prompts and summary returns at every level, and those costs stack rather than add.
So the right mental model is a budget with a hard ceiling. You would not give a team an unlimited expense account because they promised to be careful. You should not give an agent tree unlimited depth because the prompt says to stop when done.



