Using iCloud seems to imply loss of data

I have tried to configure iClous on an iMac (latest OS) and iPhone (ditto). I decided to test with just Address Book and Calendar in case I encountered problems (me, cautious?).  It has not yet worked.
I think the problem is I do not want to accept loss of data from my iMac which questions put by iCloud configuration appear to imply.
Questions
1 am I right that I would lose the data
2 is there a way of starting iCloud without that loss
3 why are the configuration questions so oblique
4 how to I undo what I have done so I can go back to synchronising by cable - at least that worked.
This is becoming an embarassment in business.

The message you are getting is when signing out of iCloud. It explains that if you don't choose the default to keep contacts on the Mac, then they will be deleted from the Mac. When you log back into iCloud, they will once again be available on the Mac.
When you claim it reverts to an inactive mode and choose to keep the contacts on the Mac, it means you're just not logged into iCloud. All features of iCloud will not be available until you log back in. But your contacts will still be in Address Book if you chose to keep them locally.
Calendars work differently. Once you log into iCloud and check to use calendars in iCloud, they will not be stored locally on the Mac. Once you log out of iCLoud, the calendars in iCal will not be available until you log back in.
Data stored in iCloud works the same as Calendars.
If not logged into iCloud on a computer, all content is still available at the website iCloud.com.

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