This endpoint creates new watermark, that you can later use on Files & Versions in order to protect your images and videos. Right now you can upload png or jpg images as your watermarks and Publitio API will securely stored them for future use. To create watermark via API visit https://publit.io/docs/?php#create-watermark if you want to do it manually go to Dashboard https://publit.io/dashboard/watermarks and click Create new Watermark, find image to upload and enter rest of the information.
When you create watermark make sure to give it a name so you know what it is, also you have option to add position for it from drop down menu.
Padding will move it away specific number of pixels from the position you have selected.