You can decide if you'll be taking the damage deposit fee for your WordPress reservations with the option "Exclude from reservation sum" present in your Hostaway listing info.
The option is called "Exclude from reservation sum" and if you choose not to include it, the deposit will not be charged at the time of booking and you will have to manage that deposit outside the booking process.
The option can be found under Listings > Prices & Fees. By default, the checkbox is unselected.