this post was submitted on 09 Jun 2023
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To your question, my understanding is that all your account activity is stored on your instance as the primary source, and then copied into other instances as users there view and interact with your posts and comments. So if the instance with your account on it shuts down, all of its content that was already copied over to other servers will be preserved there, but some of the newer activity that didn't have time to propagate yet might be lost.
I'm not sure what options there might exist now or in the future for gracefully migrating between instances, but in the worst case yes, if your instance unexpectedly shuts down then you won't be able to authenticate and access that user account anymore. You do need to have some trust in the instance you join.
What about user accounts and ownership of the community though?
If that's a worry for you, you can buy a cheap VPS and set up your own instance.