Oracle Text

2: Prevent the next 1 damage that would be dealt to any target this turn. Return Rakalite to its owner's hand at the beginning of the next end step.

Card Rulings

10/4/2004 Only returns to your hand if it is still on the battlefield at the end of the turn. If it leaves the battlefield, it does not return.
10/4/2004 Can be used any number of times during the turn before it leaves the battlefield.