I honestly never understand partial refunds for cancellations (outside of money back guarantees). As a customer, you’re committing for a year to get a discount

I honestly never understand partial refunds for cancellations (outside of money back guarantees). As a customer, you’re committing for a year to get a discount. If you can cancel at any time and get that money back, why are they getting a discount? I know there’s the underlying benefits for cash flow but the customer is undoing this by getting a refund. To be clear, I’m talking about the 1-1 transaction between seller and buyer, not the overall business model.