Let's say you have been alloted a seat in a Deemed University in Round 1. If you do not want to opt for that seat, you can avail Free Exit option without being penalised. And then you needn't participate in further rounds if you plans of taking a seat in State Counselling. Because if you forgo a seat in Round 2, you will have to forfeit the security deposit. You will not be refunded the security deposit that you paid for Central Counselling.