I've booked a flight from DXB-BHX this weekend and there is upgrade availability on the outbound (at a rip off 32,500 miles for 'deeply reclining' seats but that's another story :P).

Anyway, it's a saver fare and I can cancel for AED 100. The fare conditions also state that:

"IF THE BOOKING IS CONFIRMED FROM SEAT
ACCESS QUOTA A PENALTY OF 20 PERCENT WILL BE APPLICABLE FOR RE-BOOKING/NOSHOW
AND REFUND. THE CHARGES WILL APPLY EACH TIME IF THE SECTOR IS
CONFIRMED FROM THE SEAT ACCESS QUOTA. THIS CHARGE WILL ALSO APPLY TO SEATS
WHICH ARE TAKEN FROM SEAT ACCESS QUOTA AND ARE LATER CANCELLED FOR
UPGRADING TO FIRST OR J CLASS LEVELS IRRESPECTIVE OF THE MEANS OF UPGRADE."

The above is a bit cryptic but does this mean, as I believe it does, that if I upgrade using miles and then subsequently cancel the entire booking, I'll be liable for a 20 percent penalty (20 percent of the AED booking total I imagine but that's not clear either).

Can anyone offer an insights?

Many thanks