By default, the Padding modifier adds an equal padding of 16 points to all edges of a layer.
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You can use this modifier to control the amount of padding independently for each edge or to pad all outside edges of a layer by a specified amount.
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The order in which you apply modifiers matters. For example, if your Text layer has a Background modifier and you’d like to give your text some breathing room—make sure to place the Padding modifier above the Background modifier, ensuring that the background layer encompasses the padded region. Simply hold and drag to rearrange modifiers in the Inspector panel.