Abstract:Federated Domain-specific Instruction Tuning (FedDIT) leverages a few cross-client private data and server-side public data for instruction augmentation, enhancing model performance in specific domains. While the factors affecting FedDIT remain unclear and existing instruction augmentation methods mainly focus on the centralized setting without considering the distributed environment. Firstly, our experiments show that cross-client domain coverage, rather than data heterogeneity, drives model performance in FedDIT. Thus, we propose FedDCA, which maximizes domain coverage through greedy client center selection and retrieval-based augmentation. To reduce client-side computation, FedDCA$^*$ uses heterogeneous encoders with server-side feature alignment. Extensive experiments across four domains (code, medical, financial, and mathematical) validate the effectiveness of both methods. Additionally, we explore the privacy protection against memory extraction attacks with various amounts of public data and results show that there is no significant correlation between the amount of public data and the privacy-preserving capability. However, as the fine-tuning round increases, the risk of privacy leakage reduces or converges.