diff --git a/services/arbiter-3.0/src/routes/stripe.js b/services/arbiter-3.0/src/routes/stripe.js
index df34fba..e15eec0 100644
--- a/services/arbiter-3.0/src/routes/stripe.js
+++ b/services/arbiter-3.0/src/routes/stripe.js
@@ -11,7 +11,7 @@ const router = express.Router();
 const cors = require('cors');
 const stripe = require('stripe')(process.env.STRIPE_SECRET_KEY);
 const db = require('../database');
-const { syncRole, removeAllRoles } = require('../services/discordRoleSync');
+const { syncRole, removeAllRoles, downgradeToAwakened } = require('../services/discordRoleSync');
 
 // CORS configuration for checkout endpoint
 const corsOptions = {
@@ -300,20 +300,45 @@ router.post('/webhook', express.raw({ type: 'application/json' }), async (req, r
       }
       
       case 'customer.subscription.deleted': {
+        // Task #126: "We don't kick people out."
+        // Awakened ($1) is lifetime. When a paid subscription ends (cancellation
+        // or Stripe gave up on retries), demote to Awakened rather than remove.
+        // This event fires at actual period end, so timing is already correct.
         const subscription = event.data.object;
         const subId = subscription.id;
         
-        // Start grace period (don't remove immediately)
-        const gracePeriodEnds = new Date(Date.now() + 3 * 24 * 60 * 60 * 1000); // 3 days
+        // Find the Discord ID for this subscription before updating status
+        const subRow = await client.query(
+          'SELECT discord_id FROM subscriptions WHERE stripe_subscription_id = $1',
+          [subId]
+        );
         
         await client.query(`
           UPDATE subscriptions 
-          SET status = 'grace_period', 
-              grace_period_started_at = CURRENT_TIMESTAMP,
-              grace_period_ends_at = $1,
+          SET status = 'lifetime', 
+              tier_level = 1,
+              is_lifetime = TRUE,
+              grace_period_started_at = NULL,
+              grace_period_ends_at = NULL,
               updated_at = CURRENT_TIMESTAMP
-          WHERE stripe_subscription_id = $2 AND is_lifetime = FALSE
-        `, [gracePeriodEnds, subId]);
+          WHERE stripe_subscription_id = $1 AND is_lifetime = FALSE
+        `, [subId]);
+        
+        // Demote Discord role to Awakened (strips tier role, assigns Awakened)
+        if (subRow.rows.length > 0) {
+          const discordId = subRow.rows[0].discord_id;
+          const roleResult = await downgradeToAwakened(discordId);
+          console.log(`⬇️  Subscription ended for ${discordId}, demoted to Awakened: ${roleResult.message}`);
+          
+          await client.query(`
+            INSERT INTO admin_audit_log (action_type, target_identifier, details)
+            VALUES ('SUBSCRIPTION_ENDED_DEMOTED', $1, $2)
+          `, [discordId, JSON.stringify({ 
+            stripe_subscription_id: subId,
+            reason: 'subscription_deleted',
+            policy: 'we_dont_kick_people_out'
+          })]);
+        }
         
         break;
       }
@@ -412,6 +437,74 @@ router.post('/webhook', express.raw({ type: 'application/json' }), async (req, r
         break;
       }
       
+      case 'charge.refunded': {
+        // Task #126: Refund requested = hard ban, with Trinity appeal process.
+        // Policy: "We only remove all access for actionable hard bans."
+        // A refund is the customer asking for their money back — mirrors chargeback.
+        const charge = event.data.object;
+        const customerId = charge.customer;
+        const paymentIntentId = charge.payment_intent;
+        
+        if (!customerId) {
+          console.log(`⚠️  charge.refunded with no customer_id (likely guest checkout), skipping`);
+          break;
+        }
+        
+        // Find the subscription by customer ID
+        const subResult = await client.query(
+          'SELECT discord_id FROM subscriptions WHERE stripe_customer_id = $1 LIMIT 1',
+          [customerId]
+        );
+        
+        let discordId = null;
+        if (subResult.rows.length > 0) {
+          discordId = subResult.rows[0].discord_id;
+        }
+        
+        // Mark subscription as refund_ban
+        await client.query(`
+          UPDATE subscriptions 
+          SET status = 'refund_ban',
+              updated_at = CURRENT_TIMESTAMP
+          WHERE stripe_customer_id = $1
+        `, [customerId]);
+        
+        // Add to banned_users with appeal eligibility noted
+        if (discordId) {
+          await client.query(`
+            INSERT INTO banned_users (discord_id, ban_reason, notes)
+            VALUES ($1, 'refund', $2)
+            ON CONFLICT (discord_id) DO UPDATE SET 
+              ban_reason = 'refund',
+              notes = $2,
+              banned_at = CURRENT_TIMESTAMP
+          `, [discordId, JSON.stringify({ 
+            payment_intent: paymentIntentId,
+            charge_id: charge.id,
+            amount_refunded: charge.amount_refunded,
+            appeal_eligible: true,
+            appeal_process: 'Trinity review'
+          })]);
+          
+          // Remove ALL roles including Awakened (hard ban)
+          const roleResult = await removeAllRoles(discordId);
+          console.log(`🚫 Refund ban for ${discordId}: ${roleResult.message}`);
+        }
+        
+        await client.query(`
+          INSERT INTO admin_audit_log (action_type, target_identifier, details)
+          VALUES ('REFUND_BAN', $1, $2)
+        `, [discordId || 'unknown', JSON.stringify({ 
+          payment_intent: paymentIntentId, 
+          customer_id: customerId,
+          amount_refunded: charge.amount_refunded,
+          reason: 'Refund processed',
+          appeal_eligible: true
+        })]);
+        
+        break;
+      }
+      
       default:
         console.log(`Unhandled event type: ${event.type}`);
     }