The add folder functionality allows you to create a structure into which you can upload images and other files so you can use them with your themes.
To add a file to the root folder:
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Navigate to Control Panel Dashboard > System Administration > Site Administration > Site Content > Site Files.
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Click Create New Folder.

A Create New Folder dialog box appears.

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Enter the folder name and click Save. The folder displays in the workspace.

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You can Upload a site file to the new folder by browsing to it and clicking Upload. To view the list of files in a folder, click the folder name.