I believe the default value of the cutoff actually depends on the type of peptide search results.
You can find the source code for BlibBuild.exe here:
https://svn.code.sf.net/p/proteowizard/code/trunk/pwiz/pwiz_tools/BiblioSpec/src/BlibBuild.cpp
In there, the score cutoffs are initialized to:
scoreThresholds[SQT] = 0.01; // 1% FDR
scoreThresholds[PEPXML] = 0.95; // peptide prophet probability
scoreThresholds[IDPXML] = 0; // use all results
scoreThresholds[MASCOT] = 0.05; // expectation value
scoreThresholds[TANDEM] = 0.1; // expect score
scoreThresholds[PROT_PILOT] = 0.95; // 95% confidence
scoreThresholds[SCAFFOLD] = 0.95; // Scaffold: Peptide Probability
scoreThresholds[MSE] = 6; // Waters MSe peptide score
scoreThresholds[OMSSA] = 0.00001; // Max OMSSA expect score
scoreThresholds[PROT_PROSPECT] = 0.001; // expect score
scoreThresholds[MAXQUANT] = 0.05; // MaxQuant PEP
scoreThresholds[MORPHEUS] = 0.01; // Morpheus PSM q-value
scoreThresholds[MSGF] = 0.01; // MSGF+ PSM q-value
scoreThresholds[PEAKS] = 0.05; // PEAKS p-value
scoreThresholds[BYONIC] = 0.05; // ByOnic PEP
scoreThresholds[PEPTIDE_SHAKER] = 0.95; // PeptideShaker PSM confidence
Later on in the file, you can see what happens to those values if an explicit cutoff is specified on the command like with the "-c" parameter:
scoreThresholds[PEPXML] = explicitCutoff;
scoreThresholds[PROT_PILOT] = explicitCutoff;
scoreThresholds[SQT] = 1 - explicitCutoff;
scoreThresholds[MASCOT] = 1 - explicitCutoff;
scoreThresholds[TANDEM] = 1 - explicitCutoff;
scoreThresholds[SCAFFOLD] = explicitCutoff;
scoreThresholds[OMSSA] = 1 - explicitCutoff;
scoreThresholds[PROT_PROSPECT] = 1 - explicitCutoff;
scoreThresholds[MAXQUANT] = 1 - explicitCutoff;
scoreThresholds[MORPHEUS] = 1 - explicitCutoff;
scoreThresholds[MSGF] = 1 - explicitCutoff;
scoreThresholds[PEAKS] = 1 - explicitCutoff;
scoreThresholds[BYONIC] = 1 - explicitCutoff;
scoreThresholds[PEPTIDE_SHAKER] = explicitCutoff;
So, that means that for SQT files, since the cutoff started off at .01, and if you specify a value it gets changed to "1 - explicitCutoff", for SQT files, the default explicitCutoff is .99.
I hope this makes sense and is helpful.
-- Nick