CAD - combined arms detachment - basically the same thing as a primary detachment from sixth edition
Formation - specific models are listed what you can take such as the much hated Imperial Knights Adamantium Lance formation - these units typically get really good special rules. Love them or hate them formations are huge in 7th edition.
Multiple CADs unlock new builds not possible before. They can be utilized by players that want to build really cool lists and the power gamers. Power gamers ruin everything for everybody and but alone is not a sufficient reason to ban multiple CADs and formations... Power gamers ruin every system since they always look for game breaking combinations that make you just shake your head and want to look away. Some of the major TOs have brought back heavily restricted super comp tournament systems because of fear of the unknown - on one hand I understand their concern but on the other I say it's time to give it a chance and see what happens.
The restrictions are Finally changing so players need some help to understand how to build army lists using multiple CADs and formations. TempleCon up in Rhode Island will allow up to two CADs and also character Lords of War such as Khaldor Draigo and Logan Grimnar - they are awesome models with awesome rules and deserve the opportunity to be fielded. Up to two of each (CADs and formations) is a great starting point and even at 2000 points most players will be hard pressed to fit in more than two of each. The possibilities are endless and it's very exciting too - it's a whole new way to play the game.
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