From ae714b500371552fc9b47987488aedad0427b867 Mon Sep 17 00:00:00 2001
From: Nitanshu Lokhande <56120084+nlok5923@users.noreply.github.com>
Date: Thu, 19 Feb 2026 08:03:08 +0530
Subject: [PATCH] fix(docs): correct settings storage path in README (#194)

---
 README.md | 5 +++--
 1 file changed, 3 insertions(+), 2 deletions(-)

diff --git a/README.md b/README.md
index d8fc7a78..dd5f3ba5 100644
--- a/README.md
+++ b/README.md
@@ -139,8 +139,9 @@ ironclaw onboard
 ```
 
 The wizard handles database connection, NEAR AI authentication (via browser OAuth),
-and secrets encryption (using your system keychain). All settings are saved to
-`~/.ironclaw/settings.toml`.
+and secrets encryption (using your system keychain). Settings are persisted in the
+connected database; bootstrap variables (e.g. `DATABASE_URL`, `LLM_BACKEND`) are
+written to `~/.ironclaw/.env` so they are available before the database connects.
 
 ## Security