Today,
we'll create a volcano using altitude-filtering operations.
You'll find
the 'Filter Altitudes' button
in the 'Terrain Editor'.
Create a new scene
and press the 'Terrain in Editor' button
.
Push OK in the 'New Terrain Options' window. In the 'Terrain Editor' window
press the 'Filter Altitudes'
button and in the 'Altitudes filter' box
right click and select 'Load
Filter'.
Select
the 'Flat top' filter from the 'Terrain Profiles' collection. 
Right
click in the 'Altitudes filter' box again and select 'Edit filter'.
Drag
the top point to the right (see picture below), to make the flat part
of our terrain a bit smaller.

Press OK and check the result.

Now we can load the 'Volcano filter'.
Right click in the 'Altitudes filter'
box and load the 'Volcano' from the 'Terrain Profiles' set.

Now we
need to create lava. There are several ways to do this; here is the simplest:
Select your terrain if it's not selected. Right click and select 'Copy',
right click again and select 'Paste'.
Rename the second terrain to 'Lava'
and apply the 'Glowing Lava' material from the 'Glowing' collection.
Double
click the terrain to open the 'Terrain Editor'.
Press the 'Filter Altitudes'
button
and load
the 'Flat top' filter.
Now make
your 'lava' terrain smaller, by dragging the resizing the dots.
Move the
'lava' terrain a bit higher. See the picture.

Right
click the lava material pattern in the 'Object properties' window and
select 'Edit Material'.
Select the 'Effects' tab
and in the 'Glowing material' section set the following parameters the
'Intensity' to 18% and the 'Radius' to 50%.

Press
OK.
You can use the 'Burnt rock & Lava' material for the 'volcano' terrain.
The 'Burnt rock & Lava' is a 'mixed material'.
You can see it if you
open the 'Material Editor'. It contains the 'Lava' material and the 'Burnt
rock'. Just check the 'Simple material' in the 'Type' box and
now you have the 'Burnt rock' material
that will perfectly suit our needs.
(I added 'Fog' from the 'Atmosphere Editor' options for a more mystical look...)
