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It's the first setting you should disable on a 4gb GPU, especially if you max everything else out.
this means the shadow renderer produces some reusable content and thus can be cached if you have enough memory, and should increase performance in theory
my best guess
If anyone is curious, Im running this maxed with shadows on high and TAA. looks better than SMAA imo. Stable 60fps whith zero stutter so far at 1920x1080.
i5 3570k @ 4.5ghz, 16 gig ddr3 ram, 780ti 3gig
I guess that depends on the rest of your components. on my rig, there's no stuttering with the shadow cache off.
Turning off shadow cahce will mean when shadows are rendered they will be pulled from your harddrive/ssd, sent though your northbridge to your GPU and then rendered directly. This means you will have 4 differnt pieces of hardware, north bridge, cpu, gpu, and storage device all limiting your framerates. If all of these things are good you won't see any big performance hits. If one of them is bad you can clearly see performance hits. Shadow cache puts it all on the vram which means when it appears in game its directly rendered from vram skipping all of the other components entirely. Hence better performance.
If you have vram space use shadow cache. If you don't have vram space don't. If you see performance hits turn down shadows till your system can handle them with either solution.