Answer
Wave springs are typically 'pilot-stabilized' by either a bore or a shaft. For a bore-piloted spring, the $OD$ must be sized such that even at maximum expansion during compression, it does not bind. The standard clearance should be at least $0.005$ inches per inch of diameter. For shaft piloting, the $ID$ must account for the radial shift of the waves. If the tolerances are too tight, the spring will experience 'shingling' (the overlapping of turns in a multi-turn spring), which causes an immediate failure of the spring rate and potential permanent damage to the shaft surface.