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Generally speaking, a layer spread to a depth of 3/8" or so is fine, though certain varieties of dwarf bermuda will need 1/4" or less, with particles broken down into smaller pieces. If the topdressing is too thick, you risk smothering some of the grass and waiting longer for it to grow back. If it's too thin, you won't get as many of the benefits and you may have to do it more often.