If you are using the sure cuts a lot 3 pro software then you will want to click on the scissors icon in order to get to your cutting screen. Once there you can click on SETTINGS and then you should see OVERCUT. Set OVERCUT to 5.00 and then try again. This should close any gap for example the 1/8th gap in your design. You can then modify the 5.00 overcut to match the size gap you are closing.