What I don't understand about Bancor

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Hi /biz/, need some education please.

Bancor, how does the conversion/token trading work? From what I've gathered you basically send your Bancor tokens to the Bancor exchange and recieve your ETH alt currency of choice, right? If so then it doesn't make sense to me as I assume when this is done that it draws from the ETH reserve that Bancor network has, so 1. what happens if there's no reserve remaining? and 2. This only provides ETH, no other ETH token/currency, so how does it work if you wanted to convert say BNT to WAVES?

Secondly I don't understand the whole gas thing of ETH, from what I've read it's basically the 'fee' for moving ETH tokens around the network, but then I read that for example the BAT ICO had people having to pay huge amounts of gas to get into the ICO, so does this mean they volunteered a larger portion of their ETH to 'use' to send in? If so, how does this work with purchasing BNT as I've heard people say that you'll need to spend more gas to buy in however then on the other hand Bancor is saying that 100 BNT = 1 ETH, so how does gas apply then?

Thanks