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Need input - Is this installed upside down? I'm a total novice when it comes to the bike. And does it really matter? If so then why?

I have a stupid question - does an air cooled 125cc cheap *** Lifan engine have its own transmission oil to change or is it distributed throughout the engine from primary oil reservoir that is changed regularly?

I have a novice inquiry - I'm curious to know thoughts on whether or not it really matters if I switch fuel to "off" position after each days ride. It makes sense to do this if not riding for a couple of weeks, but what about over a day or so?