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You can have such hierarchy if you create a new issue type with some other name like "Portfolio Epic" or "Epic1" or anything else rather than exactly "Epic". Otherwise there will be conflicts in Jira as it will consider them as duplicates.
Is it possible to have this epic to feature translator in Jira cloud?
Short answer - not at the moment.
Long answer below.
Server Jira and server plugins are running on the same server and we are not limited and can work with everything that we can reach. Jira cloud architecture is built in a way that cloud Jira and cloud plugin are running on different servers and communicate via a very narrow gateway, we can only work with what Jira lets us - REST API and webhooks which is not a lot.
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For SAFe EPIC to Feature Translator to be possible in Jira cloud, we have to have several things in place none of which is possible in Jira cloud now, and we don't have the ability to work around this or just do it ourselves. So, until Atlassian changes the way Jira cloud is built, we don't have the ability to create any kind of E2F analogy in Jira cloud.
We do monitor Jira cloud updates of course and will create this as soon as the limitations are gone.