← Decagon Interview Insights

Decagon·Software Engineer·Onsite - System Design / Architecture·Senior

SeniorPrefer not to say
Jun 2026Remote

Summary

System design round at Decagon for a software engineer role, focused entirely on designing an AI gateway service. The problem was meaty and covered a lot of ground, probably more than I expected for a single session.

Questions Asked (6)

Q1

Design an AI Gateway service that sits between application clients and multiple upstream LLM providers, exposing a single unified API.

System DesignAPI & IntegrationsTechnical Trade-offs
Author's notes

This is one of those problems that sounds manageable until you realize the scope.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and constraints, then design the gateway as a stateless, horizontally scalable service with a unified API schema that abstracts provider-specific differences. Focus on core components like request routing, provider adapters, and observability, and discuss trade-offs around latency, cost, and reliability.

Pro tip: Emphasize idempotency and graceful degradation: ensure requests can be safely retried and that the gateway can fall back to alternative providers or cached responses during outages, which is critical for production reliability.

1. Clarify Requirements and Scope

Ask about expected traffic volume, latency SLAs, supported providers, authentication needs, and whether features like streaming, caching, or rate limiting are required. This ensures the design meets actual business needs.

2. Define Unified API and Abstraction Layer

Design a single API schema (e.g., REST or gRPC) that normalizes inputs/outputs across providers, including common parameters like model, temperature, and max tokens. Use an adapter pattern to translate between the unified API and each provider's specific API.

3. Design Core Components and Data Flow

Outline key components: API gateway (auth, rate limiting), request router (load balancing, failover), provider adapters, response cache, and observability (logging, metrics, tracing). Describe the request flow from client to provider and back.

4. Address Scalability, Reliability, and Security

Discuss horizontal scaling, circuit breakers, retries with exponential backoff, and idempotency keys. Cover security aspects like API key management, encryption in transit, and compliance with data privacy regulations.

5. Discuss Trade-offs and Optimizations

Compare trade-offs: latency vs. cost (e.g., caching vs. real-time), consistency vs. availability, and vendor lock-in vs. flexibility. Mention optimizations like batching, streaming, and dynamic provider selection based on cost or performance.

Key Points to Mention

  • Unified API schema and adapter pattern for provider abstraction
  • Horizontal scalability and stateless design for high availability
  • Caching strategies (response caching, semantic caching) to reduce cost and latency
  • Rate limiting, authentication, and API key management
  • Observability: logging, metrics, tracing, and alerting for monitoring provider health
  • Failover and retry mechanisms with idempotency to handle provider outages

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

How would you handle provider failover, circuit breaking, and retry logic when an upstream LLM provider starts returning errors or timing out?

System DesignTechnical Trade-offs
Author's notes

Talked through exponential backoff, circuit breaker states, and rerouting to a secondary provider.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by framing the problem as building a resilient LLM gateway that abstracts provider interactions, then walk through detection, mitigation, and recovery strategies. Emphasize trade-offs between latency, cost, and reliability, and tie your choices to Decagon's conversational AI use case where user experience is paramount.

Pro tip: Mention that retries should be idempotent and use exponential backoff with jitter, but for LLM calls, also consider token limits and cost implications—sometimes failing fast and falling back to a cheaper model is better than retrying an expensive one.

1. Detect failures and define health signals

Explain how you monitor error rates, latency percentiles, and timeouts per provider. Use these signals to trigger circuit breakers and failover.

2. Implement circuit breaking with fallback

Describe using a circuit breaker pattern (e.g., with thresholds for error rate and timeout) to stop sending traffic to a failing provider. Fallback to a secondary provider or a degraded response.

3. Design retry logic with backoff and jitter

Detail retry policies: exponential backoff with jitter, max retries, and idempotency keys. Avoid retrying on non-retryable errors (e.g., 4xx).

4. Ensure graceful degradation and user experience

Discuss fallback strategies: cached responses, simpler models, or queuing requests. Communicate status to users if needed.

5. Monitor, test, and iterate

Emphasize observability, chaos testing, and tuning thresholds based on real traffic. Continuously improve based on post-mortems.

Key Points to Mention

  • Circuit breaker states (closed, open, half-open) and how to transition between them
  • Exponential backoff with jitter to avoid thundering herd
  • Idempotency and safe retries for LLM calls (e.g., using request IDs)
  • Fallback providers and model routing (e.g., primary vs. secondary LLM)
  • Timeouts and deadline propagation to prevent cascading failures
  • Observability: metrics, logging, and tracing for provider health

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

What strategies would you use to minimize response latency, including request hedging, caching, and parallel calls to multiple providers?

System DesignTechnical Trade-offs
Author's notes

Hedged requests were the interesting bit here.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by clarifying the latency budget and user experience goals, then structure your answer around a layered strategy: reduce work (caching, batching), overlap work (parallel calls, hedging), and optimize the critical path (connection reuse, protocol choices). Emphasize trade-offs like cost, complexity, and consistency, and tie your choices to measurable SLOs.

Pro tip: Quantify the impact of each technique with rough numbers (e.g., 'hedging can cut p99 by 30-50% at the cost of 10-20% more requests') and mention that you'd validate with load tests and real user monitoring before rolling out broadly.

1. Define latency goals and constraints

Establish the target latency (e.g., p95 < 200ms) and understand the system's dependencies, failure modes, and cost constraints. This frames which strategies are worth the complexity.

2. Reduce or eliminate work

Apply caching at multiple layers (client, CDN, application, database) and use techniques like request coalescing, batching, and precomputation to avoid redundant work.

3. Overlap and parallelize

Make independent calls concurrently, use request hedging (send duplicate requests to multiple replicas/providers and take the first response), and consider speculative execution for predictable follow-up calls.

4. Optimize the critical path

Reduce network overhead with connection pooling, keep-alive, HTTP/2 or gRPC, and edge deployment. Tune timeouts and retries to avoid cascading delays.

5. Measure, iterate, and manage trade-offs

Instrument end-to-end latency, run A/B tests or canary releases, and balance latency gains against increased cost, complexity, and potential consistency issues.

Key Points to Mention

  • Caching strategies: TTL, invalidation, write-through vs. write-back, and cache hit ratio impact.
  • Request hedging: when to hedge (tail latency), how to avoid duplicate side effects, and cost implications.
  • Parallel calls: using Promise.all, asyncio.gather, or similar, and handling partial failures.
  • Timeouts and retries: exponential backoff with jitter, circuit breakers, and fallback responses.
  • Connection reuse and protocol optimization: HTTP/2, gRPC, connection pooling, and TLS session resumption.
  • Trade-offs: latency vs. cost, consistency vs. availability, and complexity vs. maintainability.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

How would you implement per-request token accounting, cost attribution per tenant or API key, and budget enforcement across multiple LLM providers?

Data ModelingProduct Analytics & MetricsSystem Design
Author's notes

Went with a usage ledger approach, writing token counts per request tagged to a tenant ID and model.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by clarifying requirements: what granularity of accounting (per request, per token type), which providers, and what budget enforcement actions (hard stop, alert, throttle). Then propose a unified data model that normalizes token usage and cost across providers, and describe the pipeline from request interception to aggregation and enforcement.

Pro tip: Mention that you'd store raw token counts and apply cost multipliers at query time, not at ingestion, so pricing changes don't require backfilling historical data. Also, use idempotency keys to avoid double-counting on retries.

1. Clarify requirements and constraints

Ask about required granularity (per request, per token type), latency tolerance for enforcement, and whether budgets are hard or soft. Identify all LLM providers and their pricing models (per token, per character, etc.).

2. Design a unified data model

Define a normalized schema for usage events: tenant_id, api_key_id, provider, model, input_tokens, output_tokens, timestamp, request_id, and metadata. Store raw counts and compute cost via a separate pricing table to allow updates without backfilling.

3. Instrument the request path

Intercept requests at a gateway or middleware layer to capture usage from provider responses. Use idempotency keys and async logging to avoid impacting latency. For streaming responses, accumulate tokens as they arrive.

4. Aggregate and enforce budgets

Stream usage events to a fast aggregation store (e.g., Redis) for real-time budget checks, and to a data warehouse for analytics. Enforce budgets by checking current spend against limits before or during requests, with configurable actions (block, throttle, alert).

5. Handle edge cases and scale

Address retries, failures, and provider discrepancies (e.g., token counting differences). Ensure the system is scalable, fault-tolerant, and provides audit trails. Consider eventual consistency for analytics vs. strong consistency for enforcement.

Key Points to Mention

  • Normalized data model with raw token counts and separate pricing table
  • Idempotency and deduplication to handle retries and avoid double-counting
  • Real-time aggregation (e.g., Redis) for budget enforcement with low latency
  • Asynchronous logging to avoid impacting request latency
  • Configurable budget actions: hard stop, throttle, or alert
  • Provider-agnostic design to easily add new LLM providers

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q5

How do you validate LLM responses for accuracy, enforce structured output schemas, and detect when a provider's quality has degraded?

A/B Testing & ExperimentationSystem DesignTechnical Trade-offs
Author's notes

Schema enforcement was easy to talk about.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Structure your answer around a layered validation pipeline: first, enforce structured output with schema validation and retries; second, assess semantic accuracy using automated checks and human-in-the-loop; third, continuously monitor provider quality with canary tests and statistical drift detection. Emphasize trade-offs between latency, cost, and reliability, and how you'd design experiments to catch degradation early.

Pro tip: Treat LLM providers as unreliable dependencies: implement circuit breakers and fallback models, and always log raw responses with request IDs for debugging and provider accountability. This shows you think about production resilience, not just correctness.

1. Enforce structured output

Use JSON schema validation, Pydantic models, or function calling to constrain responses. On validation failure, retry with a repair prompt or fallback to a stricter model.

2. Validate semantic accuracy

Combine automated checks (e.g., unit tests, fact verification against knowledge bases, consistency checks) with human review for high-stakes outputs. Use LLM-as-a-judge for scalable scoring.

3. Monitor provider quality

Run canary tests with golden datasets, track metrics like schema adherence, latency, and semantic scores over time. Set up alerts for statistically significant drops.

4. Design experiments and fallbacks

A/B test providers or model versions, use shadow deployments to compare outputs, and implement automatic failover to backup providers when quality degrades.

5. Iterate and improve

Feed validation failures back into prompt engineering, fine-tuning, or provider selection. Continuously refine thresholds and test suites based on production data.

Key Points to Mention

  • Schema validation with retries and repair prompts
  • Automated semantic checks and LLM-as-a-judge
  • Canary tests and golden datasets for regression detection
  • Statistical process control and drift detection
  • Fallback providers and circuit breakers for resilience
  • Trade-offs between latency, cost, and accuracy

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q6

Walk through the rate limiting, quota management, and observability design for the gateway, including audit logging.

System DesignAPI & Integrations
Author's notes

Felt most comfortable here.

Create a free account to read the full note

AI HintsAI Generated

Suggested Approach

Start by clarifying the gateway's role and requirements, then structure your answer around rate limiting, quota management, observability, and audit logging. For each component, explain the design choices, trade-offs, and how they integrate to provide a robust and scalable solution.

Pro tip: Emphasize the importance of distributed rate limiting and how you'd handle synchronization across multiple gateway instances, as this is a common pitfall. Also, highlight the need for audit logs to be immutable and tamper-evident for compliance.

1. Clarify Requirements and Constraints

Ask about expected traffic volume, latency requirements, multi-tenancy, and compliance needs. This ensures your design is tailored to the specific context.

2. Design Rate Limiting

Choose an algorithm (e.g., token bucket, sliding window) and decide on a distributed store (e.g., Redis) for shared state. Discuss how to handle bursts and fairness.

3. Implement Quota Management

Define quotas per user, API key, or tenant, and enforce them over longer periods (e.g., daily/monthly). Explain how quotas are tracked, reset, and how to handle overages.

4. Build Observability

Instrument metrics (e.g., request rates, error rates, latency), logging, and tracing. Use tools like Prometheus, Grafana, and Jaeger to monitor and alert.

5. Ensure Audit Logging

Log all access and configuration changes with sufficient detail (who, what, when, where). Store logs securely and immutably for compliance and forensics.

Key Points to Mention

  • Distributed rate limiting using Redis or similar with atomic operations
  • Quota enforcement with periodic resets and notification on threshold breaches
  • Observability: metrics, logging, tracing, and alerting for proactive monitoring
  • Audit logging: capturing user actions, API calls, and admin changes with tamper-proof storage
  • Trade-offs between accuracy, performance, and complexity in rate limiting algorithms
  • Integration with API gateway (e.g., Kong, Envoy) and potential use of plugins or sidecars

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.