Incremental Refresh question

I'm just a bit confused as to how this works.

When I set up incremental refresh (SS Below)

What i want is that all data for the last 3 years is stored and won't refresh every time. When I do refresh, it only brings in data that came after the archived data.

Is this how it works?

From reading it it seems like the last three years of data is stored, but after 2 months I'm going to lose data?

For example:

Archive data from 2020 Jan - 2022 Dec. If i refresh in March of 2023, will January's data be lost?

Sorry if this is confusing. Basically I just want to store the last 3 years of data then add on top of it instead of always refreshing the whole thing. Is this what is going on?