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If the bit turns freely it's possible you have the change ring in the forward position. The HM0860C is a demolition hammer, not a rotary hammer so the bit should not be rotating under power for any reason. On the HM0860C the changing ring on the nose does slide forward to let you choose and lock the chisel bits in 12 different angles. Check to make sure the change ring is in the locked position.
If this was a new unit, it comes with the proper amount already in the gearcase. You might need some for the hammer bits (a small amount of lithium grease) but other than that until the tool needs repaired you should not have to add any.
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