Welcome, Marie.
I've added a link to your tub description. If it's not correct, let us know.
Appears to me in their instructions that they intend that you would simply stop your wallboard above that lip such that the tile extends down over that gap and a flexible sealant is used between tile and tub. Rather poor approach, think I.
I can't tell from the drawings on their site just how tall those side flanges are (1 1/2" maybe?) nor how thick. In any case, the only good way I can see to waterproof the wall/tub area before tiling, would be to ensure that your wallboard thickness way adequate for the face to be flush with, or slightly proud of, that tiling flange setup. You could then use a strip of waterproofing membrane to cover that area, similar to the recommended method on tubs with a more conventional tiling flange. You'd wanna bond the membrane to the tub with silicone or a proprietary sealant, and bond the membrane to the wallboard with thinset mortar. The Schluter Kerdi website has a good description of the method with photos.
Your 4" tiles should be able to cantilever over that small gap without any problem, I would think. But I've not actually seen your tub, eh?
My opinion; worth price charged.