I don't have Peak drums, but I usually seat mine until they're about flush with the hub surface. If they stop seating and still protrude a bit, it should be fine, but try to get them even around their circumference. All they're doing is holding the grease in place, but they do have to ride on the correct contact surface of the spindle.
Trailer Guy can tell you definitively (in case I've been doing it wrong.)
jky
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