diff --git a/docs/SETTINGS.md b/docs/SETTINGS.md
index 227b7c6..7a45de0 100644
--- a/docs/SETTINGS.md
+++ b/docs/SETTINGS.md
@@ -414,6 +414,8 @@ Charge `0.0001` CLTC/CLC per byte returned.
 
 The lookup tool asks the node for the byte count and total lookup cost before payment. If the requester accepts, the lookup payment is made as a normal transfer transaction to the node's wallet, plus the normal transfer transaction fee.
 
+When the requester is the same wallet as the node operator's wallet, the node verifies the signed lookup request and returns the data without broadcasting a payment transaction. Node operators do not need to set this value to `0` for their own local lookups to be free.
+
 Node operators can set this to `0` during testing or raise it if they are serving dapp data to external users.
 
 ## `[Piggyback]`
@@ -463,4 +465,4 @@ password = change_this_password
 dbname = contractless_db
 ```
 
-Mainnet builds are currently disabled during the testnet phase, but this section is kept so the same settings file can be prepared for launch.
\ No newline at end of file
+Mainnet builds are currently disabled during the testnet phase, but this section is kept so the same settings file can be prepared for launch.