Hi! Knots just serve up git repositories over an XRPC API. The actual state on disk is really just a sqlite + your git bare repositories—the two can be tarballed and moved elsewhere easily!
We will work on more first party backup/migrate solutions though.
Git repos don't get replicated anywhere. They live on disk, either on our knot server or yours. Knots are essentially our extension to the AT architecture, allowing user ownership of what's essentially "off-protocol data" (git).