diff --git a/README.md b/README.md
index 92c9319..c6c6f34 100644
--- a/README.md
+++ b/README.md
@@ -5,6 +5,40 @@ a simple webpage which will connect to a remote ollama instance and allowes you
## configuration
-all configuration is done in the file default.php
+All application configuration is now stored in `default.php`.
+
+If you previously used `config.php`, its settings have already been merged into `default.php`.
+
+### key settings
+
+- `USER_CONFIG_DIR`: directory where user data and chat history are saved.
+- `OLLAMA_URL`: URL of your remote Ollama instance.
+- `GUEST_USER_ENABLED`: enable guest access when set to `true`.
+- `GUEST_USERNAME`: guest account username (default is `guest`).
+- `DEFAULT_MODEL`: default Ollama model used for new chats.
+- `MAIL_FROM` / `MAIL_FROM_NAME`: email sender details for password reset messages.
+- `APP_BASE_URL`: the public app URL used to generate links.
+- `APP_SECRET`: secret key used for authentication token signing and security.
+
+> Note: change `APP_SECRET` from the default before deploying to production. Use a long, random value and keep it private.
+
+### example settings
+
+```php
+
User Admin
-
+
Login
Logout