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README.md

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+# Configuration
+
+Create a `.env` file in your project root with the following variables:
+
+```env
+# PostgreSQL configuration
+PG_HOST=your_postgres_host
+PG_PORT=5432
+PG_USER=your_postgres_user
+PG_PASSWORD=your_postgres_password
+PG_DATABASE=your_postgres_db
+
+# Hugging Face configuration
+HUGGINGFACEHUB_API_TOKEN=your_huggingface_token  # Get from https://huggingface.co/settings/tokens
+HUGGINGFACE_MODEL=distilgpt2  # Or another supported model
+HF_CACHE_DIR=.cache  # (Optional) Local cache directory for models
+```
+
+Make sure to replace the values with your actual credentials.
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