This is directly from the e-mail on the package I purchased for a December trip (this does not include the Travel Protection Plan which has its own set of rules if you add that on):
- For cancellations made 30 days or more prior to Guest arrival, amounts paid (minus cancellation fees assessed by third party hotels or other suppliers, non-refundable travel protection plan costs, and other amounts owed) will be refunded.
- For cancellations made 5 days to 29 days prior to Guest arrival, amounts paid (minus a cancellation fee of $200 per package and minus any cancellation fees assessed by third party hotels or other suppliers, non-refundable travel protection plan costs, and other amounts owed) will be refunded.
- For cancellations made 4 days or less prior to Guest arrival or for no-shows, the full price of the package (including Disneyland® Resort admission tickets and all other components of the package) is non-refundable.
- No refunds will be made for early departure from hotel or for unused or partially used admission tickets, options, components, or features.
- Any refunds allowed by WDTC in its sole discretion after arrival must be requested in writing within 90 days after departure and may be assessed a $25 processing fee. WDTC reserves the right to make refunds in accordance with the method that payment was received. All appropriate refunds will be made through the Guest's travel agent if payment was made by the travel agent. WDTC is not responsible for the receipt of refund monies by Guests from their travel agents.
You only lose EVERYTHING if you cancel with 4 days or less, but you do lose part of it if you cancel in the 5 to 29 day window.