When the host cancels a confirmed booking
A host who cancels a confirmed booking leaves the renter without a space, so the rule here is sharper.
The renter receives a full refund to the card they paid with, whatever the timing of the cancellation. There are no tiers and no time window.
Repeated cancellations by the same host may lead to the listing being removed or the account being suspended.
A host who cannot keep a date is asked to update the listing's availability in advance rather than cancel a booking that has been paid for. Updating availability prevents bookings you cannot honour; cancelling hurts someone who already relied on you.
A host has nothing to decline: no booking waits for their answer. What they can do is cancel a paid booking, and the renter then receives a full refund.