Based on your example, I think it should instead be:

foldingStartMarker = '^\{if.*\}';
foldingStopMarker = '^\{/if\}';

Thanks but I can't get your regexp working with this code either

{if (true)}
{foo}
{/if}

Even if I write invalid code just to allow the regexp to be simpler, its still failing to parse it....

{if}

{foo}

{/if}

foldingStartMarker = '^\{if\}';

foldingStopMarker = '^\{/if\}';

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