[snyy]

You have the right understanding.

We've found that maximizing chunk size gives the best retrieval performance and is easier to maintain since you don't have to customize chunking strategy per document type.

The upper limit for chunk size is set by your embedding model. After a certain size, encoding becomes too lossy and performance degrades.

There is a downside: blindly splitting into large chunks may cut a sentence or word off mid-way. We handle this by splitting at delimiters and adding overlap to cover abbreviations and other edge cases.