Click the green flag to see what happens if you set the fisheye effect to Infinity. Click the settings button (top right) to change the effect value to whatever you like.
As you can see, the effect is applied to an area in the shape of an ellipse touching all sides of the costume bounding box. Anything outside of that area will be unaffected*. But you can change the costume bounding box using transparent shapes. The second cat has a white circle around it - this circle is colored white to show where it is, but it could just as well be transparent. * At Infinity, the stuff outside the ellipse disappears on some devices! I have not been able to determine what the factors are yet. For example, @donotforgetmycode and I seem to get different results on similar systems (Win 10/Chrome). This project was inspired by these comments by @Nishpish: https://scratch.mit.edu/users/papipupepappa/#comments-147829271