Could someone let me know what is the best practice in structuring the navigation bar so that it is as intuitive as possible?  Should every model have a folder of its own?

I have created folders in say level 4 based on the functions in level 3. Then in level 5 I have created folders based on functions in level 4. I have ended up with a folder for every model......is this the best way of structuring the navigation bar?

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