# Interest Accrual & Payment

## How Interest is Paid

When opening or viewing a position, you will see one of the following, depending on the market configuration:

* **Adds to Principal:** Interest accrued will be added to your principal, effectively increasing leverage over time.
* **Takes from Collateral:** Interest accrued will be paid by taking from your collateral, effectively reducing your collateral over time.

## Adding Collateral

Adding collateral, via the Add Collateral button on an open position, at any time will pay off all outstanding interest and reset the accrual clock.<br>