It can go anywhere after the pool entries.  In fact you don't "have" to add it, but many do.   You could have it in the middle though, doesn't matter:
This is my config for 7950's

ultracoinminer -o stratum+tcp://ultra.leetpools.com:3333 -u user.x -p x -o stratum+tcp://utc.greekpool.eu:3337 -u x -p x -o stratum+tcp://utc.idcray.com:10001 -u x -p x --scrypt-jane --sj-nfmin 4 --sj-nfmax 30 --sj-time 1388361600 --thread-concurrency 32256 -g 1 -I 20 -w 512  --failover-only --gpu-powertune 20 --scan-time 0 --expiry 8 --queue 0 --no-submit-stale --gpu-dyninterval 6

failover is in the middle