Answer
The edge margin is the distance from the edge of the groove to the end of the shaft or housing. If this margin is too small, the thrust load $P$ can cause 'break-out' failure, where the housing material shears off. For steel housings, the minimum edge margin is typically $3 \times$ the groove depth $d$. For aluminum, it should be $4 \times$ or $5 \times$. During installation, a small edge margin also risks deformation of the housing lip when the ring is wound into place, especially if a high-force installation tool is used. This is a common failure mode in lightweight aerospace gearboxes.