Hi @Jenna31, I just had this conversation with @David126 yesterday and since the Airbnb support info isn't specific I contacted them and this was their answer:
"With IB, you are allowed up to 3 penalty-free cancellations a year. However, if your guest does not comply with house rules, you are able to contact us to request penalty-free cancellation and this does not go against your 3 cancellations per year. House rules are to be respected by guests and if not, they are penalized, not you. We want to ensure your protection and due respect is in course at all times." (copied out from Airbnb email)
So now I'm completely confused 😞
May ask how far the booking was and what was the reason why you wanted to cancel?