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For $X = \mathbb R$, the constant function equal to 1 is in your set but its hard to believe that there is a neighborhood around it of functions bounded by $1$.
I don't think you need reference, if you speak of roots and Cartan algebras, your audience should be able to follow your arguments, or at least to believe it.
What is DeRham Cohomology of a Lie groupoid ? Do you mean groupoid cohomology defined the same way as group cohomology but restricting to composable chains ?
Using this approach you show that the dimension of such bilinear form is greater than the length of maximal chains of composition in the Lie algebra. Can you show the equality ?