> For the complete documentation index, see [llms.txt](https://docs.wasabi.xyz/_/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wasabi.xyz/_/overview/leverage-trade/interest-accrual-and-payment.md).

# 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>