[2] This species is distributed widely throughout South America and lives within xeric habitats such as the savannas found in Paraguay, Bolivia, Central Brazil, and Northern Argentina.

[3][4] C. cyphergaster primarily builds arboreal and transient epigeic nests and mainly consumes dead woods at varying stages of decomposition.

Once a feeding spot is located (typically a rotted tree trunk or branch), workers will gather around and consume material before returning with their new forage stored in their gut (unlike their Indomalayan counterparts which carry back food in their mandibles).

A maximum trail length of 18.5 meters was also observed for C. cyphergaster, which is smaller than the values recorded for other species of open-foraging termite.

These cells contain a dark material — digested balls of cellulose, which contain a high diversity of lignocellulosic ascomycetes fungi which help nutritionally enrich the food stores.