A Cut option is not required; it is a unique finishing option for shapes other than squares or rectangles. Here is a list of Cut options styles;
Circle-Cut (perfect circles) We prefer you submit full-scale square designs with your colors flooded edge to edge; you will see the final circle layout in the proofing process.
Oval-Cut (perfect ovals) same as the circle above; we prefer you submit full-scale rectangle designs with your colors flooded edge to edge.
Halo-Cut (you are in control of the path the CNC machine takes, unique custom outside shape)
Special-Cut (custom shape, inside and outside cuts are okay) Both Special & Halo Cuts require additional art set up; check out How to Set Up-Cut Files.