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Upstack already sends your destinations the standard events — page views, add-to-carts, purchases — plus new customer and returning customer purchases. A custom event is for the things only you know about: an order over $500, or a purchase from one product category. Your ad platforms can then optimize for that exact thing instead of purchases in general.
Your existing events keep firing as before. A custom event is an extra one, on top.

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Two places to set one up

Global event mappings

Set it up once and every destination gets it. Start here.

Destination event mappings

Turn one off for a single destination, or add one only that destination receives.
Either way you pick a base event, name the event your destinations receive, and set the conditions that decide when it fires. You can also change the value sent with it — profit instead of revenue, say.

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Common ones

New customer and returning customer purchases are already built in — Upstack fires nc_purchase and rc_purchase on its own. You don’t need a custom event for those. See NC & RC purchase in Meta.

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Naming

Use lowercase with underscores: high_value_purchase, apparel_purchase. Stay consistent across related events so they’re easy to tell apart.

Global event mappings

Create a mapping once and send it everywhere.

Value & formulas

Send profit, margin, a fixed amount, or your own formula.

Destination event mappings

Turn one off for a single destination, or add a destination-only trigger.

Custom events reference

Event names, parameters, and payloads.