shaving die

You will get a burring problem. You will also get more punch wear than normal due to the fact the scrap is not breaking out. The punch will suffer a lot from the wiping action.

You didn't mention the thickness or nature of the material. Some material is more difficult than others. I also assume you are talking about a progressive die.

Start out with no more than .0005 clearance per side. You may also have to back up the shaving punch with a block in the die section depending on how much it tends to move back.

If product design will allow it put a small radius in the corners. Otherwise burring will rapidly get worse at these points. No angles with sharp transitions will hold up well also you are begging for cracking of the die section.