Vector

A Vector is a type of graphic made from mathematically defined paths—such as Lines and Arcs drawn in Trace—rather than Pixels.

While working on the Vector design, you can save it as a Path file in Trace which does not require the design to be Traced.
When the design is completed, save it as a CutArt to load into the Design Editor.

Vector Design in Trace

Related Links:

Default Settings:

Tangent Threshold: Cutting Default Setting