Cut capacity ($c(S,S^c)={\sum }_{u\in S,v\notin S}{c}_{uv}$)

The cut capacity of $(S,S^c)$, with $S^c=V\setminus S$ the complement of a set, isOnly outward directed edges contribute; incoming and internal edges contribute nothing.^[ref]

Here is the accounting behind the bound, using nonnegative original edge amounts $f_{uv}$ in a finite flow network. Sum the divergence of a flow over the vertices in $S$:An edge with both endpoints in $S$ appears once with a plus sign at its tail and once with a minus sign at its head, so those contributions cancel. An outward edge appears only with a plus sign; an incoming edge appears only with a minus sign. Since $s\in S$, $t\notin S$ and every other vertex satisfies flow conservation, the left side is the flow value. ThusThe inequality uses two facts separately: each forward flow is at most its flow network edge capacity, and each backward flow is nonnegative. This is the weak duality bound underlying the max-flow min-cut theorem. It is an accounting proof, requiring no choice of augmenting paths.

For $S=\{s,b\}$ in the running example, explicitly add the two divergences of a flow:The internal $s\to b$ edge cancels. The $a\to b$ edge is a genuine original directed edge entering $S$, so its flow is subtracted; this is different from a backward edge in a residual network. Its flow network edge capacity is neither added to nor subtracted from cut capacity, which remains $c_{sa}+c_{bt}=6$.

Equality in the bound holds precisely when every outward edge is saturated and every incoming edge carries zero flow, becauseand every term is nonnegative. For $S=\{s\}$ the two outward edges are saturated and there are no incoming edges, so the gap is zero. For $S=\{s,b\}$ all outward edges are still saturated, but the incoming flow of $1$ gives a gap of $1$. This explains exactly why the second cut of a flow network is not a minimum cut.