Generally, people ask this question when they are contemplating sharing files illegally. It may be that the files are copyright-protected, or it may be that the file content (photos/videos/tutorials) is illegal. I'm not suggesting that you are doing that, but I have no way of knowing for sure, and for that reason we don't offer advice or help with any queries of this nature related to P2P networks.
What I will say, however, is that your ISP knows who you are, the sites you view, and the people with whom you communicate. the server logs record each web page you visit and how long you spent looking at it.
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