Of course that is the case. They don't get the % of the money that is covered by a milestone that they did not achieve. In case of total failure, a refund process will take place for an X amount of time after which all remaining funds will be void. However, I am 99% certain that this will not be the case.

There is no refund clause, so you can not get a refund unless everyone is getting a refund. Nobody is getting a refund unless the project is completely stopped / doesn't deliver.