I have contacted support and asked them, they said it will be refunded if you do not win the auction. I have also already had 3 domains which i have tried to register and got the information that they were already taken. For these domains by reg fee was refunded.
i have to agree with the other comments EuroDNS seems to be the best place after applying promo code to register but another better one i found is DomainMonster.com check it out
DomainMonster do not refund. That has been confirmed. If you do not win the auction for your domain name then you will loose your reg fee.