I don't understand Creative Cloud Files interaction with Lightroom

I store all my RAW files in creative cloud files on my computer and also include my lightroom CC catalog there. All the photos I edit on Lightroom are sourced from those files. I am encountering a problem where my computer is running out of space. Are the files in creative cloud files not in the cloud? I thought I had a terabyte. Will it be a problem if I deleted those local files? Thank you.