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1. he is saying it's not possible to make hard edges with illustrator to be saved as PSD

2. He said not possible to save Ai - as true vector with layers&masks to be used via photoshop, only one single merged design could be saved... and then it will have hard edges.

I don't know, as I said, I'm noob, and I don't have Illustrator, and I'm telling what he is telling me. We never had issues with single design, but with complex one, flags etc where layers/masks we faced this issue... maybe he made a mistake when creating flag image... or maybe it's impossible, I'm trying to find out and understand it...