This tool cuts a solid mode by removing material between two profiles in two directions. This works similar to boundary base / boss features, just the opposite, instead of filling the materials, it removes it.
For demonstration create a cuboid of 50x50x 100 mm extrude.
First create a center rectangle of 50mm x 50 mm on the front plane.
Then extrude the profile either way of the front plane to a total depth of 100mm as shown.
Now create a circle of 10 mm in diameter on the front face with its center 10 mm below the origin as shown.
Now create a circle of 30 mm in diameter 10 mm away from the other edge as shown
Now click on the boundary cut feature and select both the profiles. You will see the preview like this.
Now select the profile creation to be normal to the profile in both directions as shown.
Click ok / green tick to see the final model with boundary cut.
The cross sectional view shows you the way it is cut.