Leap of Faith is a simple challenge, where the warriors must climb to the top of a tree, the first half using a ladder and the second using handholds and footholds. They must then jump off the tree and grab the rings. If they fall off the tree, or if Raven has to bring the warriors who get frightened down with his magic, they will lose a life; the same goes in some seasons, if they don't get the rings.
In season 1, the warriors have to climb the tree in Old Forest, jump from the top and collect the single ring strung from a vine and a skull about a metre from the top of the tree and out of the warrior's grasp. Failure to do so will result in the loss of a life. In the final week, you've got two rings up for grabs, on separate vines.
From season 2 onwards, collecting the rings is optional, as just making the jump will preserve lives. Usually, there's one ring closer to the tree, and another two further away (in the final week of each season, there are two rings close to the tree and three further out).
In the season 7, final Thursday (the only time when Leap of Faith appeared), there were three rings on a single vine; if the warriors didn't get the rings, they'd lose a life. However, if the warriors got the rings and dropped them, they'd still win, as Danil found out.