Cut Lines: This is approximately where your artwork will be trimmed. Keeping all text and important images inside the 1/8th inch safety margins will prevent their unintended loss during cutting.
Bleeds: This are is going to be completely trimmed during the cutting process. Only solid colors, background images or foreground images that intentionally run off the page should extend through the area. Having bleeds ensures that your artwork will not have a thin white border around it.
Folds: Be very careful when running any text or important image over folds. Text, especially text under 9 pt. can be hard to read if it is falling on a fold.

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