Stitched edges help but aren't required.

Yes, stitched edges prevent fraying, but unstitched pads can still last years if they’re made well. The stitching seals the fabric layers together, so even if the edge gets snagged, it won’t unravel. Unstitched pads rely on a tight weave or a rubberized edge—if the manufacturer cut the fabric cleanly and used a durable coating, fraying is slow. For a desk pad you’ll rub your wrist on daily for five years, get stitched. For a cheap backup or casual use, unstitched is fine.

It’s a nice feature, not a necessity.