diff --git a/README.md b/README.md
index 516748e..6bfbb9f 100644
--- a/README.md
+++ b/README.md
@@ -86,11 +86,25 @@ cargo run -- -l info "your research topic"
 cargo run -- --doc ./notes.txt --doc ./research-docs/ "your research topic"
 ```
 
-Uploaded documents are embedded with a dedicated embedding model (see
-`EMBEDDING_MODEL` in [`src/models.rs`](./src/models.rs)) into an in-memory
-vector index, then the excerpts most relevant to the topic are retrieved and
-folded into the researcher's task alongside anything it finds on the web —
-the same footnote-citation scheme applies to both.
+Uploaded documents are chunked (see `documents.rs`), embedded with a
+dedicated embedding model (see `EMBEDDING_MODEL` in
+[`src/models.rs`](./src/models.rs)) into an in-memory vector index, then the
+excerpts most relevant to the topic are retrieved and folded into the
+researcher's task alongside anything it finds on the web — the same
+footnote-citation scheme applies to both.
+
+Known limitation: retrieval returns a fixed top-N chunks
+(`retrieval::TOP_N_EXCERPTS`). A document with several chunks that all read
+as similar to the query — several incident reports, several revisions of
+the same section — can crowd out the one chunk that actually answers it,
+since only the top N by similarity are ever returned regardless of how many
+plausible candidates exist. Reproduced deliberately (a 13.7 KB / 12-chunk
+document with 6 near-identical "incident report" sections, only one of
+which had the real answer, was built specifically to stress this — the top
+5 slots filled entirely with distractors and the answer chunk was
+excluded), so it's a real edge case, not a hypothetical. Not fixed for now
+since it takes a document engineered to trigger it, but worth knowing if a
+report seems to be missing something you know is in an uploaded document.
 
 ## Project layout