Offset and frame
A hole inside, or a ring outside

A kite with Offset at 40 in the Shape panel: a hole opens inside, and the shape becomes a frame

Offset

In the Shape panel of rectangles, circles, ellipses, polygons, paths and boolean operations:

ValueWhat happens
positivea hole: an outline inside, and what lies between stays empty — a ring, a frame
negativean outward frame: the shape becomes the hole, and a ring of that thickness grows outside

The slider ranges from minus to plus half of the shape's short side.

How it closes at corners

For paths and boolean operations, the Join row sets how the eroded outline closes at corners: round, miter, bevel — the same three joins as the stroke. Rectangle and polygon have sharp corners.

Where it matters

The hole is part of the outline: it is taken into account by boolean operations, distortions, snapping, SVG export and Convert to path, which writes the actual outline into the new path.