diff --git a/swap/src/cli.rs b/swap/src/cli.rs
index 43aa1bd7..6fa8d56b 100644
--- a/swap/src/cli.rs
+++ b/swap/src/cli.rs
@@ -51,6 +51,7 @@ pub enum Command {
     History,
     Resume(Resume),
     Cancel(Cancel),
+    Refund(Refund),
 }
 
 #[derive(structopt::StructOpt, Debug)]
@@ -98,6 +99,24 @@ pub enum Cancel {
     },
 }
 
+#[derive(structopt::StructOpt, Debug)]
+pub enum Refund {
+    BuyXmr {
+        #[structopt(long = "swap-id")]
+        swap_id: Uuid,
+
+        // TODO: Remove Alice peer-id/address, it should be saved in the database when running swap
+        // and loaded from the database when running resume/cancel/refund
+        #[structopt(long = "counterpart-peer-id")]
+        alice_peer_id: PeerId,
+        #[structopt(long = "counterpart-addr")]
+        alice_addr: Multiaddr,
+
+        #[structopt(flatten)]
+        config: Config,
+    },
+}
+
 #[derive(structopt::StructOpt, Debug)]
 pub struct Config {
     #[structopt(
diff --git a/swap/src/main.rs b/swap/src/main.rs
index 08de692b..0b7573d6 100644
--- a/swap/src/main.rs
+++ b/swap/src/main.rs
@@ -13,7 +13,7 @@
 #![allow(non_snake_case)]
 
 use crate::{
-    cli::{Cancel, Command, Options, Resume},
+    cli::{Cancel, Command, Options, Refund, Resume},
     config::{
         initial_setup, query_user_for_initial_testnet_config, read_config, ConfigNotInitialized,
     },
@@ -235,11 +235,49 @@ async fn main() -> Result<()> {
             tokio::spawn(async move { event_loop.run().await });
 
             match bob::cancel(swap.swap_id, swap.state, swap.bitcoin_wallet, swap.db).await? {
-                Ok((txid, _)) => { info!("Cancel transaction successfully published with id {}", txid)},
-                Err(CancelError::CancelTimelockNotExpiredYet) => {info!("The Cancel Transaction cannot be published yet, because the timelock has not expired. Please try again later.")},
-                Err(CancelError::CancelTxAlreadyPublished) => {info!("The Cancel Transaction has already been published.")}
+                Ok((txid, _)) => {
+                    info!("Cancel transaction successfully published with id {}", txid)
+                }
+                Err(CancelError::CancelTimelockNotExpiredYet) => {
+                    info!("The Cancel Transaction cannot be published yet, because the timelock has not expired. Please try again later.")
+                }
+                Err(CancelError::CancelTxAlreadyPublished) => {
+                    info!("The Cancel Transaction has already been published.")
+                }
             }
         }
+        Command::Refund(Refund::BuyXmr {
+            swap_id,
+            alice_peer_id,
+            alice_addr,
+            config,
+        }) => {
+            let (bitcoin_wallet, monero_wallet) =
+                init_wallets(config.path, bitcoin_network, monero_network).await?;
+
+            // TODO: Optimize to only use the Bitcoin wallet, Monero wallet is unnecessary
+            let bob_factory = Builder::new(
+                seed,
+                db_path,
+                swap_id,
+                Arc::new(bitcoin_wallet),
+                Arc::new(monero_wallet),
+                alice_addr,
+                alice_peer_id,
+                execution_params,
+            );
+            let (swap, event_loop) = bob_factory.build().await?;
+
+            tokio::spawn(async move { event_loop.run().await });
+            bob::refund(
+                swap.swap_id,
+                swap.state,
+                swap.execution_params,
+                swap.bitcoin_wallet,
+                swap.db,
+            )
+            .await??;
+        }
     };
 
     Ok(())
diff --git a/swap/src/protocol/bob.rs b/swap/src/protocol/bob.rs
index e12ab8b2..4807d16e 100644
--- a/swap/src/protocol/bob.rs
+++ b/swap/src/protocol/bob.rs
@@ -23,6 +23,7 @@ pub use self::{
     cancel::cancel,
     encrypted_signature::EncryptedSignature,
     event_loop::{EventLoop, EventLoopHandle},
+    refund::refund,
     state::*,
     swap::{run, run_until},
     swap_request::*,
@@ -34,6 +35,7 @@ pub mod cancel;
 mod encrypted_signature;
 pub mod event_loop;
 mod execution_setup;
+pub mod refund;
 pub mod state;
 pub mod swap;
 mod swap_request;
diff --git a/swap/src/protocol/bob/refund.rs b/swap/src/protocol/bob/refund.rs
new file mode 100644
index 00000000..88331516
--- /dev/null
+++ b/swap/src/protocol/bob/refund.rs
@@ -0,0 +1,39 @@
+use crate::{
+    bitcoin::Wallet,
+    database::{Database, Swap},
+    execution_params::ExecutionParams,
+    protocol::bob::BobState,
+};
+use anyhow::Result;
+use std::sync::Arc;
+use uuid::Uuid;
+
+#[derive(thiserror::Error, Debug, Clone, Copy)]
+#[error("Cannot refund because swap {0} was not cancelled yet. Make sure to cancel the swap before trying to refund.")]
+pub struct SwapNotCancelledYet(Uuid);
+
+pub async fn refund(
+    swap_id: Uuid,
+    state: BobState,
+    execution_params: ExecutionParams,
+    bitcoin_wallet: Arc<Wallet>,
+    db: Database,
+) -> Result<Result<BobState, SwapNotCancelledYet>> {
+    let state4 = match state {
+        BobState::BtcCancelled(state4) => state4,
+        _ => {
+            return Ok(Err(SwapNotCancelledYet(swap_id)));
+        }
+    };
+
+    state4
+        .refund_btc(bitcoin_wallet.as_ref(), execution_params)
+        .await?;
+
+    let state = BobState::BtcRefunded(state4);
+    let db_state = state.clone().into();
+
+    db.insert_latest_state(swap_id, Swap::Bob(db_state)).await?;
+
+    Ok(Ok(state))
+}