Yes, it is OK to cut it off. Leave about an even two inches showing. Just be sure to never drain your pool. If you do the liner will shrink and you may need that excess liner when refilling.

Next time around try this method. Tuck all of your excess liner back into the pool and allow a nice even two inches overhang on the outside. Having a double layer of liner over the wall seems to help the coping and rods hold it all place a little tighter.

The pool looks great, enjoy.

Dennis