# Cool-Off Cancellation

When a cancellation occurs within this allowed window, the system automatically issues a refund according to the pricing logic you have configured.

This feature helps ensure compliance with cooling-off regulations and improves customer experience by offering a simple, automated cancellation workflow.

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### How the Cool-Off Period Works

* After a customer purchases a policy, a cool-off window begins.
* If the customer submits a cancellation request within the allowed duration, the system:
  * Accepts the cancellation, and
  * Issues a refund based on your pricing logic configuration.

You determine the refund behaviour by setting up a pricing example that the system uses to calculate refunds.

### Set Up Your Pricing File

Before you can activate the cool-off functionality, you must add a pricing file.

To do this:

1. Click "Go to Pricing Logic Settings".
2. Follow the instructions on the [pricing-logic](https://docs.kasko.io/product-builder-manual/fundamentals/create-your-first-product/pricing-logic "mention") page.
3. Return to the Cool-Off Cancellation product feature.
4. Ensure your pricing file is selected.

### How the System Behaves After Setup

* A customer purchases a policy.
* They choose to cancel within the cool-off duration.
* The system references your selected pricing file to calculate the refund.
* The customer receives the refund automatically.