Cancelation.

[Namique-Lindel-Everton0]

Do I need to setup a cancelation fee? If yes how do I go by doing so

[Emiel1]

@Namique-Lindel-Everton0 

There is no option to set a cancellation fee 

You need to choose a cancellation policy for your listing.

That cancellation policy calculates the refund (if any) when a guest cancels the reservation.

Your listing now has the "flexible" cancellation policy attached.

More to read about cancellation:

https://www.airbnb.com/help/article/475