diff --git a/docs/database_subset.md b/docs/database_subset.md
index 4db7d1ec..ec7b8be7 100644
--- a/docs/database_subset.md
+++ b/docs/database_subset.md
@@ -5,6 +5,12 @@ when you need to dump only a part of the database, such as a specific table or a
 ensures data consistency by including all related data from other tables that are required to maintain the integrity of
 the subset.
 
+!!! info
+
+    Greenmask genrates queries for subset conditions based on the introspected schema using joins and recursive queries.
+    It cannot be responsible for query optimization. The subset quries might be slow due to the complexity of
+    the queries and/or lack of indexes. Circular dependencies resolution requires recursive queries execution.
+
 ## Detail
 
 The subset is a list of SQL conditions that are applied to table. The conditions are combined with `AND` operator. **You
@@ -29,6 +35,16 @@ Greenmask will automatically generate the appropriate queries for the table subs
 system ensures data consistency by validating all records found through the recursive queries. If a record does not meet
 the subset condition, it will be excluded along with its parent records, preventing constraint violations.
 
+!!! warning
+
+    Currently, can resolve multi-cylces in one strogly connected component, but only for one group of vertexes. For 
+    instance if you have SSC that contains 2 groups of vertexes, Greenmask will not be able to resolve it. For instance
+    we have 2 cycles with tables `A, B, C` (first group) and `D, E, F` (second group). Greenmask will not be able to
+    resolve it. But if you have only one group of vertexes one and more cycles in the same group of tables (for instance
+    `A, B, C`), Greenmask will be able to resolve it. This might be fixed in the future. See second example below.
+
+You can read the Wikipedia article about Circular reference [here](https://en.wikipedia.org/wiki/Circular_reference).
+
 ## Example: Dump a subset of the database
 
 !!! info
@@ -61,3 +77,103 @@ transformation:
       - >
         person.password.passwordsalt = '329eacbe-c883-4f48-b8b6-17aa4627efff'
 ```
+
+## Example: Dump a subset with circular reference
+
+```postgresql title="Create tables with multi cyles"
+-- Step 1: Create tables without foreign keys
+DROP TABLE IF EXISTS employees CASCADE;
+CREATE TABLE employees
+(
+    employee_id   SERIAL PRIMARY KEY,
+    name          VARCHAR(100) NOT NULL,
+    department_id INT -- Will reference departments(department_id)
+);
+
+DROP TABLE IF EXISTS departments CASCADE;
+CREATE TABLE departments
+(
+    department_id SERIAL PRIMARY KEY,
+    name          VARCHAR(100) NOT NULL,
+    project_id    INT -- Will reference projects(project_id)
+);
+
+DROP TABLE IF EXISTS projects CASCADE;
+CREATE TABLE projects
+(
+    project_id       SERIAL PRIMARY KEY,
+    name             VARCHAR(100) NOT NULL,
+    lead_employee_id INT, -- Will reference employees(employee_id)
+    head_employee_id INT  -- Will reference employees(employee_id)
+);
+
+-- Step 2: Alter tables to add foreign key constraints
+ALTER TABLE employees
+    ADD CONSTRAINT fk_department
+        FOREIGN KEY (department_id) REFERENCES departments (department_id);
+
+ALTER TABLE departments
+    ADD CONSTRAINT fk_project
+        FOREIGN KEY (project_id) REFERENCES projects (project_id);
+
+ALTER TABLE projects
+    ADD CONSTRAINT fk_lead_employee
+        FOREIGN KEY (lead_employee_id) REFERENCES employees (employee_id);
+
+ALTER TABLE projects
+    ADD CONSTRAINT fk_lead_employee2
+        FOREIGN KEY (head_employee_id) REFERENCES employees (employee_id);
+
+-- Insert projects
+INSERT INTO projects (name, lead_employee_id)
+SELECT 'Project ' || i, NULL
+FROM generate_series(1, 10) AS s(i);
+
+-- Insert departments
+INSERT INTO departments (name, project_id)
+SELECT 'Department ' || i, i
+FROM generate_series(1, 10) AS s(i);
+
+-- Insert employees and assign 10 of them as project leads
+INSERT INTO employees (name, department_id)
+SELECT 'Employee ' || i, (i / 10) + 1
+FROM generate_series(1, 99) AS s(i);
+
+-- Assign 10 employees as project leads
+UPDATE projects
+SET lead_employee_id = (SELECT employee_id
+                        FROM employees
+                        WHERE employees.department_id = projects.project_id
+                        LIMIT 1),
+    head_employee_id = 3
+WHERE project_id <= 10;
+```
+
+This schema has two cycles:
+
+* `employees (department_id) -> departments (project_id) -> projects (lead_employee_id) -> employees (employee_id)`
+* `employees (department_id) -> departments (project_id) -> projects (head_employee_id) -> employees (employee_id)`
+
+Greenmask can simply resolve it by generating a recursive query with integrity checks for subset and join conditions.
+
+The example below will fetch the data for both 3 employees and related departments and projects.
+
+```yaml title="Subset configuration example "
+transformation:
+  - schema: "public"
+    name: "employees"
+    subset_conds:
+      - "public.employees.employee_id in (1, 2, 3)"
+```
+
+But this will return empty result, because the subset condition is not met for all related tables because project with 
+`project_id=1` has reference to employee with `employee_id=3` that is invalid for subset condition.
+
+```yaml title="Subset configuration example"
+transformation:
+  - schema: "public"
+    name: "employees"
+    subset_conds:
+      - "public.employees.employee_id in (1, 2)"
+```
+