diff --git a/README.md b/README.md
index 15712a4..23bd419 100644
--- a/README.md
+++ b/README.md
@@ -52,10 +52,11 @@ bash AAXtoM4B [AUTHCODE] <AAX INPUT_FILES>...
 
 ### Defaults
 * Specifying the AUTHCODE.
-    In order of precidence.
-    1. [AUTHCODE]
-    2. .authcode
-    3. ~/.aaxto_config
+    In order of __precidence__.
+    1. [AUTHCODE] The command line option. With the highest precidence.
+    2. .authcode If this file is placed in the current working directory and contains only the authcode it is used if the above is not.
+    3. ~/.aaxto_config a global config file for all the tools. And is used as the default if none of the above are specified.
+Note: At least one of the above must be specified. The code must also match the encoding for the user that owns the AAX file(s).
 
 ## Anti-Piracy Notice
 Note that this project does NOT ‘crack’ the DRM. It simply allows the user to