diff --git a/.gitignore b/.gitignore
index 5a9ec0e2..a9c966b0 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,5 +20,6 @@ captures
 /platforms/
 /platform-tools/
 /.temp/
+/docker/.env
 /.run/*
 kotlin-js-store/
diff --git a/README.md b/README.md
index c7692836..f720af5f 100644
--- a/README.md
+++ b/README.md
@@ -46,6 +46,11 @@ capabilities in a standardized manner, enabling seamless integration and interop
   adjusted according to real-time interactions and policy evaluations.
 - **Conflict Resolution**: Defines how disputes or mismatches in federation policies among entities are resolved.
 
+# Local Key Management System - Important Notice
+
+Local Key Management Service is designed primarily for testing, development, and local experimentation
+purposes. **It is not intended for use in production environments** due to significant security and compliance risks.
+
 # Data Structure
 
 ## Entity Statement Overview