When the Engrave checkbox is checked on a Tool palette of a library object, when the object is placed on a page, it performs the text wrap action on underlying objects on the same layer, creating a cut-in runaround. As the wrap is created with 0 margins on all sides, and it is not possible to specify the different margins, this setting is not very useful.

The engrave attribute is active if the library object replaces a page object, and also if the library object is just placed on page, with no replacement.

Note: an alternative is to use the dynamic text wrap on the specific frame.

Clip

The setting is active only when you replace a smaller object on a page with a bigger one from the library.

If Clip is ticked, the total size of the replaced object is kept, and the replacement object is clipped out.

If Clip not ticked, and the position and size of the replacement object is all Fixed, the size of the replacement object is kept.