I bowed out of a project about 10 hours in. Do I owe the client their deposit back?

For context, I’ve done graphic design for 6 years, but this is only my second freelance gig. Got hired to do graphics/emails for a private individual and had them sign my standard contract stating the 25% deposit is non-refundable. I’ve worked on the project for about a week and the client asks for updates. I send them what I’ve worked on, and they aren’t satisfied. Per my contract, I allow 1 revision. I send over the revised versions, and they’re still unhappy and demanding. At this point, my mental health was declining due to the stress, and I sent the client copies of all the work I’d done thus far (about 10 hours worth) and said I wouldn’t be able to complete the project, forfeiting the remainder of my fee. The client returned a week later saying all my work was unusable and the emails were not adequate; they want their deposit back (about $200). What should I do?

**Update:** Thanks for the advice, guys. With your input and that from some friends in the industry, I believe I handled the situation OK. This was a chance meeting and a one-off interaction with someone across the country. I’m taking a break from freelancing for a bit to focus on my full-time job but in the future will be rewording my contract.

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