this post was submitted on 15 Aug 2023
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Federation only duplicates stuff an instance's users subscribe to, so if you're a single user instance it wouldn't copy anything you don't see (if you actually vet your subscriptions and regularly view their content).
That was my thought as well. A single user instance with no local communities would only be storing posts from communities that one user subscribes to. Assuming the person subscribes to only what they want to see, that will be all they get (and any risks that come from storing information from those communities).
In a hypothetical situation where there are only single-user instances and community instances (instances that function as the source of communities), the only ones taking on risk would be the individual users subscribed to a community and owners of the instance hosting the community. There wouldn't be a need for an admin to make decisions to protect themselves that affect other users.
Those parentheses are doing a lot of heavy lifting.