diff --git a/README.md b/README.md
index 40e325b..0ec9cbe 100644
--- a/README.md
+++ b/README.md
@@ -184,10 +184,15 @@ If you want to use the LDAP backend:
 
 
 # Network Discovery
-To allow other federated Identity Server to reach yours, configure the following DNS SRV entry (adapt to your values):
+To allow other federated Identity Server to reach yours, the same algorithm used for Homeservers takes place:
+1. Check for the appropriate DNS SRV record
+2. If not found, use the base domain
+ 
+If your Identity Server public hostname does not match your Matrix domain, configure the following DNS SRV entry 
+and replace `matrix.example.com` by your Identity server public hostname - **Make sure to end with a final dot!**
 ```
 _matrix-identity._tcp.example.com. 3600 IN SRV 10 0 443 matrix.example.com.
-```
+``` 
 This would only apply for 3PID that are DNS-based, like e-mails. For anything else, like phone numbers, no federation 
 is currently possible.