Live input latency

Got a question for y'all. Although I'm pretty sure I already know the answer.

When using a deck as a live input, are you subject to the latency setting within traktor? The reason I ask is because I was running my setup through a live input on a s4 that a buddy of mine has. He had his master out running to the main sound system and there was a HUGE delay between my headphones and the sound system. So much that it was impossible for me to beatmatch and I had to use the sync for half of my set.

I'm pretty sure that Traktor still needs to process the incoming sound and is therefore subject to the latency setting but I'd like some confirmation on this.