diff --git a/README.md b/README.md
index a86a047..996ee27 100644
--- a/README.md
+++ b/README.md
@@ -10,11 +10,11 @@ syntax highlighting.
 ## Features
 
 - Treesitter syntax highlighting in fugitive diffs and commit views
-- Word-level intra-line diff highlighting, including VSCode's diffing algorithm
+- Character-level intra-line diff highlighting
 - `:Gdiff` unified diff against any revision
 - Background-only diff colors for `&diff` buffers
 - Inline merge conflict detection, highlighting, and resolution
-- Vim syntax fallback, configurable blend/debounce/priorities
+- Vim syntax fallback, context padding, configurable blend/debounce
 
 ## Requirements
 
@@ -38,9 +38,10 @@ luarocks install diffs.nvim
 ## Known Limitations
 
 - **Incomplete syntax context**: Treesitter parses each diff hunk in isolation.
-  Context lines within the hunk (` ` prefix) provide syntactic context for the
-  parser. In rare cases, hunks that start or end mid-expression may produce
-  imperfect highlights due to treesitter error recovery.
+  To improve accuracy, `diffs.nvim` reads lines from disk before and after each
+  hunk for parsing context (`highlights.context`, enabled by default with 25
+  lines). This resolves most boundary issues. Set
+  `highlights.context.enabled = false` to disable.
 
 - **Syntax flashing**: `diffs.nvim` hooks into the `FileType fugitive` event
   triggered by `vim-fugitive`, at which point the buffer is preliminarily
@@ -63,9 +64,7 @@ luarocks install diffs.nvim
 # Acknowledgements
 
 - [`vim-fugitive`](https://github.com/tpope/vim-fugitive)
-- [@esmuellert](https://github.com/esmuellert) /
-  [`codediff.nvim`](https://github.com/esmuellert/codediff.nvim) - vscode-diff
-  algorithm FFI backend for word-level intra-line accuracy
+- [`codediff.nvim`](https://github.com/esmuellert/codediff.nvim)
 - [`diffview.nvim`](https://github.com/sindrets/diffview.nvim)
 - [`difftastic`](https://github.com/Wilfred/difftastic)
 - [`mini.diff`](https://github.com/echasnovski/mini.diff)