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I was wondering if I took a formation that included an independent character do I still need to take an HQ to satisfy my CAD. Also, can the character in the detachment be the entire army's Warlord? I am pretty confused by the formations and how they interact with everything else.

The formations makeup has no bearing or effect whatsoever on a CAD FoC slots. A CAD is an entirely different detachment than whatever formation you are looking at. So, yes you would need another HQ for your CAD.

The character in the formation can indeed be your warlord which then makes that formation your primary detachment.

 Waaagh 18 wrote:
I was wondering if I took a formation that included an independent character do I still need to take an HQ to satisfy my CAD. Also, can the character in the detachment be the entire army's Warlord? I am pretty confused by the formations and how they interact with everything else.

Y0ou dont NEED a CAD to make a bound army - all that is required is forming your army out of detachments, of which a formation is one
Not all ICs are HQs, either. Dont make the mistake of assuming they are (Sanguinary priests, for example)

You entire army can be made up of formations if you wish, and your warlord can be from such a formation, making it your primary detachment - as formations are a type of detachment.

The new rules are *very* flexible.

 Waaagh 18 wrote:
I was wondering if I took a formation that included an independent character do I still need to take an HQ to satisfy my CAD. Also, can the character in the detachment be the entire army's Warlord? I am pretty confused by the formations and how they interact with everything else.

Formations are Detachments, so is a CAD.
Therefore your question could be rewritten as:
"I was wondering if I took a Detachment that included an Independent Character do I still need to take an HQ to satisfy my other Detachment.
Also, can the Character in the Detachment be the entire army's Warlord?
I am pretty confused by the Detachments and how they interact with everything else."

Things I want to point out:
1) Independent Character and HQ's are two separate things.
2) A unit can only belong to ONE Detachment, not two.
3) Any Character can be the Warlord, as long as he is not in an Allied Detachment.

Important thing to remember: Formations are Detachments, instead of "1 HQ and 2 Troops" they have stuff like "1 Ghazghkull and 2 Units of Ork Boyz"

This is a perfectly legal Battleforged Army. As you can see, formations are outside of detachments and their corresponding FOC.

Battle-forged armies are made entirely of Detachments. Detachments have a Force Organisation Chart with minimum and maximum limits on Battlefield Roles (formerly known as force organisation slots). Units can only belong to a single detachment.

Formations are a special type of Detachment that have a specific list of units they consist of, rather than having a FOC. Other than that, think of them as being exactly the same as a normal Detachment.

Thanks for the help guys