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README.md
@@ -5,3 +5,9 @@ helm upgrade -i <tenant>-credentials -n <tenant> --create-namespace https://gith
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```
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If OpenStack API is protected by the certificate issued by custom CA, add `--set cacert="$(cat /path/to/cacert)"` to the helm command.
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+
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+If you choose to use clouds.yaml with application credentials (auth_type: `v3applicationcredential`), it is the preferred and more secure option.
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+If you opt to use clouds.yaml with password authentication (auth_type: `v3password`), that is also acceptable, but:
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+- Ensure that `project_id` is set, `project_name` works only for CAPO, not for OCCM!
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+- Using `project_id` guarantees that both CAPO and OCCM function correctly with `v3password` authentication.
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