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+# API Authentication Notes
+
+This file complements the main README and highlights a few practical
+points about API authentication for the Kalshi starter code.
+
+## Environment variables
+
+The starter expects the following variables to be set:
+
+- `KALSHI_API_KEY`
+- `KALSHI_API_SECRET`
+- `KALSHI_ENV` (`demo` or `prod`)
+
+Use `env.sample` as a template and copy it to `.env` for local usage.
+
+## Demo vs production
+
+- `demo` is intended for testing and experimentation.
+- `prod` is the live environment for real trading.
+
+Make sure your credentials and environment variable values match the
+environment you intend to use.
+
+## Handling credentials
+
+- Do not commit `.env` files or credentials to version control.
+- Prefer environment variables or secret management solutions provided
+  by your deployment platform.
+- Rotate credentials if you suspect they may have been exposed.
+
+## Error handling
+
+If you encounter authentication-related errors:
+
+- re-check the values of `KALSHI_API_KEY` and `KALSHI_API_SECRET`,
+- confirm that `KALSHI_ENV` is set correctly,
+- inspect the error messages returned by the client for additional
+  hints.