Folders are containers that hold records. Predefined folders, like the drafts folder, are present when the application starts. You see them when you click Your Records:
Drafts - Records that are not yet ready to submit for processing.
Submitted by You - Records you have submitted that are in the processing pipeline.
Completed - Records that have completed their processing.
With tasks assigned to you - Records with open tasks that have been assigned to you.
With you as participant - Records you have participated in or are currently participating in, even if no task has been assigned.
Following - Records you are currently following in your Activity Feed.
Your Folders - Folders you create, including bookmark folders and folders that contain a custom view. You create new folders using the options in this menu, and the folders you create appear here.