diff --git a/README.md b/README.md
index 696d927..7060f37 100644
--- a/README.md
+++ b/README.md
@@ -22,6 +22,12 @@ A terminal-based morse code practice game built with Deno. Improve your morse co
   - Best streak tracking
   - Historical game data
   - Average time per round
+  - Stats saved locally in project folder
+
+- **Smart Feedback**
+  - Immediate feedback on answers
+  - Shows what your morse code translates to when incorrect
+  - Helps you learn from mistakes
 
 - **Flexible CLI**
   - Interactive menu mode (default)
@@ -122,7 +128,9 @@ The game tracks:
 - Best streak (consecutive correct answers)
 - Per-mode statistics
 
-Stats are saved to `~/.morse-game/stats.json`
+Stats are saved to `./data/stats.json` in the project directory.
+
+When you answer incorrectly, the game shows what your morse code input actually translates to, helping you understand and learn from your mistakes.
 
 ## Development