diff --git a/README.md b/README.md
index bda3823..e5ba037 100644
--- a/README.md
+++ b/README.md
@@ -276,8 +276,8 @@ proxy to allow using a wildcard domain.
 ### Setup
 
 - Set a DNS record for `*.haze.exmaple.com` and `haze.example.com` pointing to
-  `127.0.0.1` or your development machine if you need to access it from other
-  devices.
+  your development machine. Pointing it to `127.0.0.1` will also work, but comes
+  with limitations like federation not being supported.
 - Set the `proxy` configuration with your domain and desired listen endpoint.
 - Set up a service to run `haze proxy` in the background as your own user. A
   systemd user service is recommended (see [haze.service](./haze.service) for an