Pick LFM3-1.7B if you want a tool-calling model that fits in about 1 GB at 4-bit, runs on a laptop or phone and can be fine-tuned on a single GPU. Skip it for agentic coding: Liquid advises against it, and its 43.40 on SWE-bench Verified trails the 9.7B Qwen model's 51.20 in Liquid's own table.
Can you use it?
- Liquid API (Console): yes (Pay as you go; new organizations get 2 US dollars of free credit, a trial credit and not a free plan). OpenRouter and Vercel are named launch partners, but neither public catalog listed LFM3 on 2026-11-04.
- Liquid Playground: yes. Plans and limits not published on the pages read.
- Free plan: yes.
- Open weights: released (LFM Open License v1.0).
Checked 4 Nov against Liquid AI's own pages. Compare access across frontier models
What changed
LFM3-1.7B is a 1.73-billion-parameter open-weight text model from Liquid AI with a 256K-token context window and native tool calling. Its 24 layers mix gated short convolutions with sliding-window and global attention, and Liquid post-trained it for local agent harnesses such as Hermes Agent and OpenClaw.
Where it sits
- $0.11/M$ per 1M tokensBlended price (3:1)Lower is better#8 / 94peer median $1.63/Mvendor price, checked by Hokai
- 43.4%% solvedSWE-bench VerifiedHigher is better#35 / 38peer median 76.3%per source, see benchmark scores
- 63.4%% correctGPQA DiamondHigher is better#53 / 61peer median 87.4%per source, see benchmark scores
Cheaper than 92% of the 94 GA models with a published price, in the bottom third on SWE-bench Verified (rank 35 of 38), and one of 8 whose vendor states it may train on customer data.
Ranks are against GA models on Hokai that publish the same figure; ties share a rank.
Provider: Liquid AI · Family: LFM3
Context window: 262,144 tokens
Input modalities: text, tool-calls · Output: text, tool-calls
About LFM3-1.7B
LFM3-1.7B is the text model in LFM3, the third generation of Liquid Foundation Models from Liquid AI. Liquid announced the family on 27 October 2026 and published this checkpoint, post-trained from LFM3-1.7B-Base, as one of six open-weight models of about 2B parameters. The base was pre-trained on 22T tokens, and the last 3.5T were curated mid-training data rich in agentic traces and tool calls. Liquid's deprecations page now lists it as the recommended replacement for LFM2.5-2.6B, and the announcement says it beats that model while using 35% fewer parameters. The earlier LFM line is represented on Hokai by the vision model LFM2.5-VL-3B. More from this maker sits in the Liquid AI model directory, and similar releases are grouped under open-weight models.
Every score here is vendor-reported. It comes from the table on Liquid's model card, where all models were served in BF16 with vLLM at their full context length, and no independent evaluator lists LFM3-1.7B yet. On agents and tool use Liquid reports 71.39 on BFCL V4, 80.36 on ToolSandbox, 38.42 on WebArena-Verified and 45.60 on LiveClaw, ahead of the 9.7B Qwen3.5-9B on each (62.83, 76.41, 28.94 and 35.77). It also shows 73.03 on IFBench, 73.46 on LiveCodeBench v6 and a 49.37 average across all rows against 47.24 for Qwen3.5-9B. The larger model keeps the lead on MCP-Atlas (42.67 against 32.57), GPQA Diamond (80.40 against 63.37), Humanity's Last Exam without tools (16.41 against 7.17), SWE-bench Verified with the OpenCode agent setup (51.20 against 43.40) and Terminal-Bench 2.1 (17.98 against 12.92).
Liquid says the model is not recommended for agentic coding or complex multi-step reasoning, and that knowledge-heavy tasks need retrieval or search; with search its Humanity's Last Exam score nearly doubles, from 7.17 to 13.90. The AA-Omniscience rows show the same pattern from another side: 7.07 accuracy, but a 92.93 non-hallucination score, against 13.17 and 52.59 for Qwen3.5-9B. Those figures reconcile with a model that declines far more often than it answers wrongly, which suits an agent that can fall back to a search tool. Long context is mixed: 65.56 on RULER 128K trails the 84.63 of the 4.7B Qwen3.5-4B, while the two tie on AA-LCR (52.83 and 52.67).
Liquid post-trained the model inside agent harnesses such as Hermes Agent and OpenClaw. Its guide to running those locally is written around LFM2.5-2.6B, so the commands there need the LFM3 model id and a recent llama.cpp. In a testimonial printed in the announcement, MacPaw's LLM efficiency lead says LFM3-1.7B beat Qwen3.5-2B on 65 everyday agent tasks in real macOS environments, with 64% task success against 48% and 58% fewer tokens per task. That is one customer's test, published without a method. Hokai's guide Hermes Agent vs OpenClaw compares the two frameworks.
GPU serving runs through Transformers, vLLM and SGLang. On CPUs and phones, llama.cpp is the documented route, with builds on Hugging Face in BF16, FP8, NVFP4, GGUF, MLX and ONNX. Ollama and LM Studio also load GGUF files, subject to the runtime-version quirk below, and the guides How to Run AI Locally in 2026 and Ollama vs LM Studio cover choosing between them. Hosted access comes from Liquid Console and a Playground. Liquid names OpenRouter and Vercel as launch partners, but neither public model catalog listed any LFM3 model on 4 November 2026, so the Liquid API is the one verified hosted route.
Pricing
USD per million tokens as printed on Liquid's pricing page on 4 November 2026: $0.08 input, $0.02 cached input, $0.20 output. That page prices LFM3-VL-2B, LFM3-Audio-2B and LFM3-Omni-2B separately, so match the model name before comparing rates. Self-hosting adds no license fee, and a company past the license's revenue limit gets its quote from Liquid sales. For an alternative with a published API rate, see [Ministral 3 3B](/hub/models/ministral-3-3b); the family overview is at [LFM3](/hub/models/lfm3).
What a real job costs
| Job | Input | Output | Total |
|---|---|---|---|
| Summarise a 20-page PDF | $0.0024 | $0.0002 | $0.0026 |
| Support reply | $0.0002 | $0.0001 | $0.0002 |
| One coding agent run | $0.016 | $0.0040 | $0.020 |
Budgets: 20-page PDF = 30k in / 1k out · Support reply = 2k in / 300 out · Coding agent run = 200k in / 20k out. Computed from the vendor's per-token prices at render time; cached-input discounts are not applied.
Key Features
- Tri-hybrid layer mix: The 24 layers combine 13 gated short convolutions, 5 sliding-window attention layers and 6 global attention layers, a layout Liquid searched for on 14 device and backend combinations.
- Cheap long context: Liquid measures 1.6 GB of KV cache for a full 128K-token context, against 4.3 GB for Qwen's 4.7B model and 5.6 GB for MiniCPM5-2B.
- Deferred tools and tool search: Tools marked defer_loading stay out of the prompt until a search tool returns their names, so one agent can choose from a large tool catalog without paying for every schema up front.
- Small quantized files: The quantization-aware-distilled Q4_0 GGUF is 1.05 GB and the Q4_K_M build is 1.10 GB, against 3.46 GB for the BF16 safetensors.
- Single-GPU fine-tuning recipes: Liquid ships TRL notebooks for SFT, DPO, GRPO and continued pre-training, including a GRPO run over a 108-tool phone app and a Turkish language example.
Pros
- Beats a model more than five times its size on function calling and browser-style agent tasks in the vendor's own comparison.
- Abstains more than it guesses on the AA-Omniscience public subset, which is a useful trait when an agent can call a search tool.
- Small enough to fine-tune on one GPU, so a narrow in-house specialist is realistic for a small team.
Cons
- Weak where size matters: the vendor itself advises against agentic coding and complex multi-step reasoning.
- The LFM Open License v1.0 is not Apache 2.0: commercial use is licensed only below $10 million in annual revenue, counting parents and affiliates, unlike Ministral 3 3B.
- No safety evaluation or system card accompanies the release, and no independent benchmark site lists the model yet.
Benchmarks
- IFBench: 73.0% vendor-reported · 04 Nov 2026 — How precisely the model follows detailed instructions, % passing.
- MCP Atlas: 32.6% vendor-reported · 04 Nov 2026 — Tasks solved by calling external tools over the Model Context Protocol, % solved.
- GPQA Diamond: 63.4% vendor-reported · 04 Nov 2026 — PhD-level science questions that are hard to search for, % correct.
- LiveCodeBench v6: 73.5% vendor-reported · 04 Nov 2026 — Recently published coding problems, % solved.
- SWE-bench Verified: 43.4% vendor-reported · 04 Nov 2026 — Real GitHub issues fixed end to end, % solved.
- Terminal-Bench 2.1: 12.9% vendor-reported · 04 Nov 2026 — Multi-step tasks completed in a real command line, % solved.
- Humanity's Last Exam: 7.2% vendor-reported · 04 Nov 2026 — Expert-written questions across many fields, % correct.
A benchmark is an exam, not the job. Scores transfer unevenly between tasks, so weigh the one closest to your workload and read every figure with its source.
Frequently Asked Questions
What are LFM3-1.7B's pricing plans in 2026?
Liquid's hosted API charges $0.08 per million input tokens, $0.02 per million cached input tokens and $0.20 per million output tokens, and every new organization gets $2 of free credit on Liquid Console. Running the model yourself adds no license fee, so self-hosting costs only your own hardware. Against the [Ministral 3 3B](/hub/models/ministral-3-3b) API, listed at $0.10 for both input and output, LFM3-1.7B is cheaper on input and twice the price on output, so output-heavy agents favor Ministral on API cost.
LFM3-1.7B or Qwen3.5-9B: which should you pick?
Pick LFM3-1.7B for tool calling and browser or business-app agents on a device with little memory to spare, since it leads Qwen3.5-9B on BFCL V4 and WebArena-Verified in Liquid's table at under a fifth of the parameters. Pick Qwen3.5-9B for coding agents, graduate-level science and anything that depends on stored knowledge, where it wins SWE-bench Verified, GPQA Diamond and Humanity's Last Exam in the same table. Both sets of numbers are Liquid's own runs, so test each on your prompts before committing.
Is LFM3-1.7B free to use?
Liquid releases the model on its LFM Open License v1.0, which lets you download, modify and fine-tune it at no charge and puts no copyleft on your fine-tunes. The revenue limit applies only to commercial use: a legal entity with $10 million or more in annual revenue, counting parents, subsidiaries and affiliates together, is not licensed and must agree terms with Liquid, whose pricing page lists no price and says to contact sales. Research and non-profit use sits outside the limit, while Apache 2.0 models such as Ministral 3 3B carry no revenue cap at all.
Does Liquid AI train on the data you send to LFM3-1.7B?
On Liquid's hosted Console and API the answer is yes in effect: its Terms of Service grant Liquid a license to use submitted content to develop and improve its models, including training and fine-tuning, with no fixed retention period. The same terms bar sending HIPAA-regulated health data, payment-card data and children's personal data unless the documentation or a separate agreement allows it. Weights you run yourself never pass through Liquid's services. The pricing page promises no training on customer data only for its custom-deployment work, so ask for that agreement if you need it on the API.
What are the best alternatives to LFM3-1.7B?
For coding and science, [Nemotron Labs Dory 1.0 4B](/hub/models/nemotron-labs-dory-1.0-4b) lists higher scores than LFM3-1.7B on every benchmark the two Hokai records share, under a permissive license, though each vendor ran its own tests. [Ministral 3 3B](/hub/models/ministral-3-3b) adds image input and Apache 2.0 terms, which suits companies above Liquid's revenue limit. [Gemma 4 12B](/hub/models/gemma-4-12b) reads text, images, audio and video, but needs about 6.6 GB of VRAM at Q4_K_M, so it targets a different class of device.
Top Alternatives
- Nemotron Labs Dory 1.0 4B: Pick Nemotron Labs Dory 1.0 4B if coding and science scores matter more than size; pick LFM3-1.7B when the device has almost no memory to spare.
- Ministral 3 3B: Pick Ministral 3 3B if you need image input or permissive terms at a larger company; pick LFM3-1.7B for text-only tool-calling agents on tighter memory.
- Gemma 4 12B: Pick Gemma 4 12B for audio and video understanding on a single consumer GPU; pick LFM3-1.7B when the target is a phone or a thin laptop.
- LFM3: Pick the LFM3 family page if you also need the vision, audio, omni or decision models on the same backbone; pick LFM3-1.7B for text-only agents.