@Thomas407 I'll assume you know that this policy only pays out if you had a strict cancellation policy. Furthermore you only get 25% of what you would have received at cancellation so probably this will only be 12.5% of you revenue (probs minus taxes and cleaning fees).
I have heard, but not seen written, that the payout would come when you would have normally received the payout from the guest. Also there are people saying that if you agreed to cancel the reservation you would get nothing - Again I have not seen this so all in this paragraph might well be fake news.