LFM2.5-2.6B vs Qwen3.5-4B

LFM2.5-2.6B

A small, fast cousin for tool calls, extraction and long-context steps on a laptop or phone. Liquid's own 4-bit build is 1.6 GB, and every common runtime runs it. It always thinks, isn't meant for coding or knowledge-heavy work, and organisations over $10M of revenue need another licence. There are no safety results or security contact.

Qwen3.5-4B

A small vision-language cousin for tool calls, light agent steps and image or video reading on almost any machine, with switchable thinking. Ollama's 3.3 GB build or the 9.3 GB BF16 files run in every major runtime under plain Apache 2.0. The main risks are no safety results, no structured-output guarantee and no answers from Alibaba since March.

LFM2.5-2.6B

1. Quickest start is ollama run LiquidAI/lfm2.5-2.6b, 1.7 GB, or llama-cli -hf LiquidAI/LFM2.5-2.6B-GGUF
2. With vLLM or SGLang pass --tool-call-parser lfm2; for vLLM add --reasoning-parser qwen3 so the thinking comes back separately
3. Sample at temperature 0.1, top_k 50 and repetition_penalty 1.1, as the card and generation_config.json set
4. Put tools in the system prompt as List of tools: [...] JSON, or pass tools to apply_chat_template; calls come back as a Python list of function calls, and the system prompt can ask for JSON calls instead
5. Leave max_tokens unset or generous, since a low cap cuts the reasoning off mid-thought
6. Earlier thinking is dropped from the prompt unless preserve_thinking is true
7. Liquid's 328M LFM2.5-2.6B-DSpark drafter speeds decoding about 2.6 times in SGLang and on Apple silicon, per Liquid
8. Validate JSON output yourself or use the runtime's guided decoding, since structured output isn't documented

Qwen3.5-4B

1. Smallest start is ollama run qwen3.5:4b (Q4_K_M, about 4 GB with context)
2. Full precision vllm serve Qwen/Qwen3.5-4B --port 8000 --max-model-len 262144 --reasoning-parser qwen3 --enable-auto-tool-choice --tool-call-parser qwen3_coder
3. Turn thinking off with "chat_template_kwargs": {"enable_thinking": false} in the request body, since it's on by default and /think and /nothink aren't supported
4. There's no generation_config.json, so pass the card's sampling yourself, for example temperature=0.7, top_p=0.8, top_k=20, presence_penalty=1.5 without thinking
5. Keep the context at 128K or more if you rely on thinking, and turn on YaRN only past 262,144 tokens
6. Validate any JSON it returns, since structured output isn't documented