Bleed, Trim, and Safety:
There are three main elements to know when setting up a document with a bleed. They are the bleed line, trim line, and safety line.
Bleed Line: 1/8" (.125)
One important custom printing term to know is a bleed. Bleed refers to an extra 1/8" (.125) of image that extends beyond the trim area of your printing piece. The project is printed on an oversized sheet that is cut down to size with the appearance that the image bleeds off the edge of the paper.
Trim line indicates where to trim the printed sheet or where the edge of the paper is to ensure that the edges of the printed document are printed correctly. Similar to register or crop marks. The trim line is the final document size.
The safety line or inner margin is the area in which to keep all important elements (text, logo, and/or content) within to prevent them from trimming off. All important elements should be at least 1/8" (.125) inside the edge of the trim line. The cutting of your printed piece is done in large stacks and may vary from the top and the bottom of the stack.
All borders need to be 3/16" within the Trim Line as well as 1/8" extending out over the bleed line (Blue Frame).
Templates also include fold marks that indicate where the fold will be. It is best to line up your panels with the folding marks to ensure the fold being in the correct spot on the panel in final production.