diff --git a/README.md b/README.md
index 0caff9d..941aa38 100644
--- a/README.md
+++ b/README.md
@@ -6,6 +6,32 @@ The --ipsets and --server lookup has been rewritten. It scales well with thousan
 of --ipsets and --server entries.
 
 
+               _______root_______
+              /                  \
+            com                   org
+          /  |  \                /    \
+         /   |   \              /      \
+    yahoo google twitter     debian  freebsd
+      |      |                  |        |
+     www    mail               cn       www
+                                |
+                               ftp
+
+The lookup steps over domain name hierarchy top-down. All labels are stored in
+open addressing hash tables. Sub-level labels that belong to different parent
+nodes are stored separately. e.g. yahoo, google, and twitter are in one hash
+table, while debian and freebsd are in another. 
+
+The hash table size is power of 2, two hash functions are used to compute hash
+bucket. For locating a particular label from hash table, two hash values are
+compared first, only if they are match, should the more expensive string
+comparison be used to confirm the search. 
+
+The search should take constant time regardless the size of --ipset and --server
+rules.
+
+
+
 ### Issues
 
 * `tcp_request` not working