diff --git a/README.md b/README.md
index 29c7305..56acb9a 100644
--- a/README.md
+++ b/README.md
@@ -7,6 +7,7 @@ A simple interactive tool to:
 - turn bluetooth on/off
 - blacklist paired devices to not be listed in connection selection
 - trust devices
+- create alias names for devices
 
 all via dmenu. Should be easily extendable by editing the `actions` string.
 
@@ -43,6 +44,45 @@ make uninstall
 ```
 If you have troubles with an uninstall, _additionally_ run `which bt | xargs rm`.
 
+# files created by bthandler
+There are four files which bthandler looks at, all located in `~/.config/bt` (also respects `$XDG_CONFIG_HOME`, if set):
+
+- `config`
+- `paired`
+- `alias`
+- `blacklist`
+
+They're configurable via `bt edit <file>` or by navigating to the corresponding location manually.
+
+## config
+A shell file that gets read at the beginning of every invocation of bt. Mostly used to set variables such as the scan period, whether to automatically trust devices, etc..
+Also defines the location of the following three files.
+
+## paired
+A hardcoded list of all paired devices. Gets updated even if devices are not paired through bt. This exists mostly because of historical unreliable output of `bluetoothctl paired-devices`. The syntax is exactly the same as that command:
+
+```
+Device <MAC-adress> <name>
+```
+With spaces as delimiter.
+
+## alias
+A file where one can manually set alias names for specific devices. Useful if multiple devices of the same device name are used on the PC.
+The syntax is:
+```
+<MAC-adress> <new alias name>
+
+```
+With spaces as delimiter.
+
+## blacklist
+A list of devices not to list in bt even though they're paired. Useful for devices that usually automatically connect.
+The syntax is:
+```
+<alias name/name>
+```
+Where the alias name takes precedence if present.
+
 # Troubleshooting
 
 ## If bt takes long to show a menu
@@ -50,7 +90,6 @@ consider turning off `AUTOSCAN`. If there are many devices around you autoscanni
 
 This should only be an issue if `bluetoothctl scan off` is unreliable for you though.
 
-
 # TODO
 
 - [x] start scanning for new devices immediately at execution to save time when pairing new devices
@@ -61,4 +100,4 @@ This should only be an issue if `bluetoothctl scan off` is unreliable for you th
 - [x] only list connected devices to disconnect from, not all paired devices
 - [x] only list not trusted devices in trust menu
 - [x] selecting already connected device disconnects it
-- [ ] create alias for devices via dmenu
+- [x] create alias for devices via dmenu