In these next few steps, you will be folding, ironing creases, unfolding, then folding in a different direction and ironing again. This sounds complicated, but you'll find that it will make the later steps of sewing the sides together much easier.
5. With back of Design A facing you, fold the top 1/2" of fabric at the basted line. Iron along the very edge of the fold to make a crease in the fabric. If you have used metallic or blending filament, do this without ironing over the design. Next, unfold that flap and do the same thing. Try not to "un-iron" the crease in the flap you just created. Repeat with all four sides.
It may help to look ahead at the later steps to aid in visualizing this process.
6. With the back of the Design A still facing you, fold down the corner of the fabric. If you look at the other side, your fold should be at the very tip of the basted corner. If doesn't stay in place easily, iron that very tip without "un-ironing" the creases in the side flap. Place a pin there to hold it in place. Do the same with all four corners.
7. Now fold the side flaps down and put a pin in each side.
When completed with all four sides, flip the ornament over and you will have a preview of what the finished piece will look like!