This is the area which must extend 0.125" to each side of your artwork over the final cut size of the job. This is generally the background color or photo but must be applied at the end of the design process. NO text or graphics must encroach on the bleed area as they will be cropped at the finishing stage.
Your type (text) should be 0.125" (1/8”) inside the cut box on each side (in the safe area below). This will guarantee your text to not be cut off from your artwork.
See image below: The Green Line is the Trim Line. The Bleeds extend outside the Trim Line. No text should be 1/8” inside the Trim line (the Safe Area) to ensure they will not be cut off.