Cold CutCold cut works well for materials that do not fray and cannot be sealed.
Hot CutHeat sealing, or hot cut, seals materials such as satin which would normally fray and fall apart if only cold cutted. Heating the blade up to 800 degrees Celcius melts the edge of the material leaving a hairless seam.
UltraSonicUltrasonic cut, or sonic cut, seals material in a similar way to hot cut but at a microscopic level. It uses finely-tuned vibrations that generate heat only at the cutting point. Doing so maintains the soft feel on the edge of the label and results in a higher-quality feeling product.