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Clearance - Specifies the absolute height at which the tool can move freely in the XY plane without encountering any material or fixtures.
Level - Specifies the absolute height at which the cycle is to start.
Depth - Specifies the total depth (incremental from the Level) to which to machine.
Clip to Depth - Check this for the toolpath to be clipped at the Depth value. With this unchecked, the cycle behaves as if the surface extended into a flat region at the Depth height.