Undercut for Continue

Continue already reads a rules folder. Give it one that stops overpaying.

Undercut is a free, MIT-licensed routing rule you drop into .continue/rules/ — the folder Continue auto-discovers on every session and folds into the system message — cheap tier first, escalate only on evidence, never on a vibe. Continue is bring-your-own-model by design, so it has no single built-in cost dial to compare against; this exists because the same overpay-by-default pattern we measured elsewhere in the agent ecosystem (one self-reported ccusage breakdown from a different agent showed 93.8% of tokens going to the top-tier model by default, anthropics/claude-code#27665 — one account's data, not Continue's own) shows up anywhere an agent defaults every task to its strongest model.

Install for Continue See the benchmarks
Works anywhere a routing rule can be read
Claude Code Codex Cursor Copilot OpenCode Continue

How this maps onto Continue

.continue/rules/ is the confirmed, auto-discovered path.

Continue's documented mechanism is a project-level .continue/rules/ folder at the workspace root: any Markdown file dropped in there is auto-discovered when Continue starts and concatenated into the system message for Agent, Chat, and Edit requests alike — no config-file edit required (per Continue's own rules docs). Each rule file carries YAML frontmatter — name (required), plus optional description, globs, regex, and alwaysApply — and files load in lexicographical order, so a numeric prefix (01-…, 02-…) controls sequencing when you're running more than one. Undercut's SKILL.md already ships a name: and description: frontmatter block for other clients, which happens to satisfy Continue's required fields as-is — no rewrite needed, just a copy.

Continue's config.yaml also supports referencing a rule with a rules: block (uses: author/rule-name for a published Continue Hub block, or uses: file://path/to/rule.md for a local file) — a second, more explicit path if you'd rather wire it through config than rely on folder auto-discovery. Both read the same Markdown file; Install below covers the folder path, since it needs no config edit at all.

Undercut's tier names — cheap, standard, frontier, apex — are generic on purpose. Continue is explicitly bring-your-own-model — you wire up any provider (Anthropic, OpenAI, local Ollama models, and more) in config.yaml yourself, so there's no single fixed lineup to map onto. models.md gives the rule of thumb instead of a fixed slug: cheap resolves to the smallest/fastest model in whatever provider lineup you've configured, standard to your default work model, frontier to the highest-reasoning model you have access to, and apex is reserved for the single batched tie-break call when the ladder is exhausted.

Nothing about this sits between Continue and whichever model backend you've configured. It's plain markdown text Continue reads into its system message, same as any other rule — no proxy, no network hop, nothing to route around if you delete the file.

Install for Continue

Free. MIT. Nothing installs, nothing proxies your traffic.

Option 1 — drop it in .continue/rules/ (recommended, confirmed path)

Run this from the repo root. Continue auto-discovers every Markdown file under .continue/rules/ and loads it at session start — no config.yaml edit needed.

$ mkdir -p .continue/rules && curl -fsSL https://raw.githubusercontent.com/undercutsh/firstpass/main/skills/firstpass/SKILL.md -o .continue/rules/firstpass.md

Option 2 — reference it from config.yaml

If you'd rather wire it through config than rely on folder auto-discovery, add a rules: entry pointing at a local file — per Continue's own config reference, this is the same uses: file://… syntax used to pull a published Continue Hub rule block.

rules: - uses: file://.continue/rules/firstpass.md

What's still unverified: skills.sh doesn't currently list Continue among its supported install targets, so npx skills add undercutsh/firstpass has no confirmed Continue path yet — use Option 1 above instead, directly confirmed against Continue's own rules docs. Whether a global, machine-wide rules folder (analogous to a home-directory config) exists alongside the project-level .continue/rules/ is also not documented anywhere we could find; treat this as project-scoped only until Continue's docs say otherwise.

Validate it yourself

  1. 1Read the published results — testing/README.md and the raw JSON in testing/results/
  2. 2Reproduce for free, no API key, no spend: node src/main.js --mock
  3. 3Open Continue's rules panel in the IDE and confirm firstpass shows up as an active rule before starting mechanical work

Zero lock-in. It's markdown text Continue reads — delete the file and you're back to status quo.

How it works

The Undercut Rubric · v1

Six flags assign a tier. Three triggers are the only way up.

This is a named, versioned spec — not internal logic we could quietly change. When the rubric changes (a new flag, a different cap), the version number moves and the changelog says why.

Every unit of work gets scored against six flags, then assigned the cheapest tier that can plausibly handle it. It only moves up a tier when something objective proves it needs to — a failed check, a measured disagreement, an explicit uncertainty flag. It never moves up on a guess, and it never moves back down mid-task.

unit of work
6-flag rubric
0 flags
cheap~90% of units land here ✓
1–2
standard
3+/own
frontier
↑ escalate +1 tier only on: fail ×2 · two runs disagree · tagged "uncertain" residue only — never redoes the batch
See the rubric

Step 1 — Base tier, six-flag rubric

Unverifiable — can output be checked mechanically? (tests, schema, diff, grep)
Ambiguous — one right answer, or several defensible ones?
Blast — reversible? touches money, auth, user data, production, deletes?
Cross-cutting — one file/source, or reasoning across many?
Novel — pattern-following, or genuinely new design?
Format-strict — must output match an exact schema?

0 flags → cheap · 1–2 → standard · 3+ or any ownership/judgment call → frontier. Apex only when you can write one sentence stating why the marginal intelligence pays for the cost.

The override — single biggest lever

Cheap-to-verify ⇒ cheap-to-generate. If output can be checked mechanically, it starts at the lowest tier regardless of how hard it looks — verification catches failure. Only unverifiable work needs to start high.

Step 2 — Escalate exactly one tier, on evidence only

  • Verification fails twice at the current tier
  • Two cheap-tier runs disagree on ambiguous-flagged work
  • The worker tags an item "uncertain"

Residue-only handoff

The next tier up gets only the failed or uncertain items, plus verification notes. It resolves the residue — it never redoes the batch.

Hysteresis — guardrails

Never de-escalate mid-task. Max one retry per tier. Anything still unresolved goes to a single batched apex tie-break call. One hard file in a 700-file job doesn't drag the other 699 up a tier.

 unit of work
      |
  6-flag rubric
      |
  +---+----+
  | 0 flags|--> cheap
  | 1-2    |--> standard
  | 3+/own |--> frontier
  +---+----+
      | fail x2 / disagree / uncertain
      v
  escalate +1 tier
  (residue only)
      |
  still unresolved?
      v
  single batched
  apex tie-break

Why it holds up

Flags steer. Verification and escalation decide.

Even when the rubric flags are scored imperfectly, the escalator still routes work to the right tier almost every time — because a wrong flag only ever costs one extra cheap attempt, never a wrong answer or a big bill.

See the data

A stock dispatcher model reproduces the rubric flags imperfectly — Haiku hits 90% agreement, Sonnet 93%. The weakest flag (format-strict) is only 60%. None of that matters: under the shipped policy, both dispatchers still route 100% of units to the correct tier. A wrong flag changes the ladder cap, never the base tier — worst case, one extra cheap attempt.

Haiku dispatcher
90% flag agreement
100% tier-match
Sonnet dispatcher
93% flag agreement
100% tier-match

The rules are about the work, not the model.

Every rule is a property of the unit of work — verifiable, ambiguous, blast-radius — never a specific model's known weakness. Vendor cards go stale as models change; work properties don't. It's also hard-won — a format-strict rule that worked on Anthropic backfired on Gemini, which is exactly why the rubric no longer encodes per-vendor behavior.

Honest limits

What this doesn't do.

Not a proxy, not a gateway, doesn't auto-flag in production — and Continue's own reliability at scoring the flags hasn't been separately measured the way Claude Code's has (see above); treat that as unverified until tested. It also doesn't pick a model for you: Continue is bring-your-own-model, so resolving each tier to a concrete provider and model is still a choice you make in Continue's own config.yaml. And it doesn't promise a dollar figure for your workload. Full list of general limits, with the finance/procurement note and the paid-tier disclosure, is on the main page.

Undercut the top tier. Not the quality bar.

Nothing about this page expires. What does keep happening is the token bill, one session at a time, on whatever Continue is currently doing with mechanical work.

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