The Scarlet Cup is a species of fungus in the family Sarcoscyphaceae of the order Pezizales. There is a similar species, Sacoscypha coccinea; both are edible. This is one of the very few mushrooms that can grow in below freezing conditions.
Scarlet cups are decomposers of dead wood, particularly hawthorn, beech, hazel, willow and elm. They tend to appear on decaying sticks and branches particularly in damp areas of a woodland floor. Sarcoscypha Austriaca grows primarily on the eastern side of Canada and the U.S. Sacoscypha Coccinea grows on the west side of Canada and the U.S. Both species are found in many parts of the world, including Europe, Asia, Africa, South America and Australia.