Crystal growth of semiconductor nanowires from a liquid droplet depends on the stability of this droplet's liquid-solid interface. Because of the assisting property of the droplet, growth will be hindered if the droplet is displaced onto the nanowire sidewalls. Using real-time observation of such growth by in situ transmission electron microscopy combined with theoretical analysis of the surface energies involved, we observe a reoccurring truncation at the edge of the droplet-nanowire interface. We demonstrate that creating a truncation widens the parameter range for having a droplet on the top facet, which allows continued nanowire growth. Combining experiment and theory provides an explanation for the previously reported truncation phenomenon of the growth interface based only on droplet wetting dynamics. In addition to determining the fundamental limits of droplet-assisted nanowire growth, this allows experimental estimation of the surface tension and the surface energies of the nanowire such as the otherwise metastable wurtzite GaAs {101̅0} facet.