1: an ornamental border consisting of short straight or twisted threads or strips hanging from cut or raveled edges or from a separate band
[M-W's Dictionary]

I couldn't understand the red text. Please explain it to me. Thank you.

Let's consider the fringe of a carpet. The fringed area (the ornamental border of short threads) is made by either (1 ) cutting or unweaving the cross-threads from the edge itself, or (2 ) sewing a separate band of short threads onto the edge of the carpet. Have a LOOK.

Thank you, Mr Micawber.