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The term "die cut" is used to describe the process of cutting shapes from paper and other materials. This process works a lot like a cookie cutter – we place a die cutter on our machines and run it over uncut label paper. The resulting labels have shapes cut into them that correspond to the shape of the die.
This means that the die line is the physical border of your label. You should design your label with the assumption that nothing outside the die line will print or remain on the label once it's peeled up from the sheet. If you want your design to go all the way to the edges of your label (as opposed to it having a white border), consider adding a bleed.
A "bleed" is when you allow your design to transcend the dimensions of the "finished product." Bleeds ensure that once label paper is cut or a label is peeled up from its liner that your desired color reaches the edge of the label and you don't have any unprinted edges. Bleeds also account for any shifting that occurs throughout the printing process.
We suggest adding a bleed of at least 3.175mm or 1.5875mm to your design. This will account for the slight movement that can occur during the printing process.
Learn how to add a bleed using Maestro Label Designer.