So after a period, you're required to issue a refund. The issue is that you cannot always issue a refund after $period, where $period ranges anywhere from 60-1

So after a period, you're required to issue a refund. The issue is that you cannot always issue a refund after $period, where $period ranges anywhere from 60-180+ days depending on dozens of different factors (three or four different banks, your payment gateway, various data retention policies, card expiration, and more). Unlike raising a seed round, for example, it's rather impractical to give (remaining?) money back if you realize the project is not going anywhere after six months or a year. Suffice to say, there's a reason that Kickstarter has started to clamp down on projects with a higher likelihood of failures and is outright blocking certain categories.