There are really two criteria I believe. The minimum insertion mark on the post is to protect the post from snapping, if the mark’s showing there’s not enough post in the frame. There’s also, usually, a minimum insertion point for a given frame – the amount of post needed in the frame to protect the frame from breaking, it’s usually at a point below the lowest point of the seattube/top tube weld that people have mentioned, but I guess it can vary between designs. I think on my Inbred it’s about 1cm below this point, but being a heavy bloke I like a fair bit more in the frame than this. If in doubt (and I could be wrong) it’s probably worth checking with the frame manufacturer.