I'm guessing that it's fine as long as I go through with the trip?
It's already been paid for, even if you don't go through with the trip. You paid with the points, then Chase's contracted travel agency purchased the ticket.
What would happen if I had to cancel and refund the trip?
That might depend on the fare or the specific terms of Chase's travel agency. Most likely, you'd pay some sort of a cash fee for a "redeposit" and would get the UR points back in your account. The freedom treats 1 UR point = $0.01 instead of the $0.015 you paid with, so you'd essentially lose $0.50 for each 100 points
