Originally Posted by JohnneeO

It seems like there are two separate things here. One is cancellation, meaning there is no charge to back out of your reservation. The second is that your prepayment is non-refundable. In other words, you won't be charged any additional fees to back out of your reservation at the time you cancel, but you will forfeit any prepayment.

I don't think that these are conflicting terms. I would view these terms as fully non-refundable.