Instruction Finetuning DeepSeek-R1-8B Model Using LoRA and NEFTune

# Instruction Finetuning DeepSeek-R1-8B Model Using LoRA and NEFTune
Source: [https://arxiv.org/abs/2606.10392](https://arxiv.org/abs/2606.10392)
[View PDF](https://arxiv.org/pdf/2606.10392)

> Abstract:Financial named\-entity recognition \(NER\) is essential for translating unstructured financial reports and news into structured knowledge graphs\. However, general\-purpose large language models \(LLMs\) often misclassify financial entities or ignore domain\-specific patterns\. This paper investigates the use of DeepSeek\-R1\-8B, a recent open\-source large language model, combined with Low\-Rank Adaptation \(LoRA\) and Noisy Embedding Fine\-Tuning \(NEFTune\) for financial NER\. Each annotated sentence in our corpus of 1693 samples is converted into an instruction\-input\-output triple\. We insert lightweight LoRA matrices into the Transformer layers and apply NEFTune to improve generalisation by adding uniform noise to embedding vectors during training\. Experiments show that the LoRA\-adapted DeepSeek\-R1\-8B achieves a micro\-F1 of 0\.901 on seven entity types \(Company, Date, Location, Money, Person, Product and Quantity\), and adding NEFTune further boosts the micro\-F1 to 0\.912, outperforming Llama3\-8B, Qwen3\-8B, Baichuan2\-7B, T5 and BERT\-Base baselines\.

## Submission history

From: Mingni Luo \[[view email](https://arxiv.org/show-email/b0599c0c/2606.10392)\] **\[v1\]**Tue, 9 Jun 2026 04:14:49 UTC \(493 KB\)