The following is taken from the Kingdom of Atlantia's MOL Handbook
Warlord is another hybrid form of tournament. The first round is set up like a normal elimination tournament. The winner of each fight in the first round becomes the warlord for a two-man team of himself and the fighter he defeated. They will then fight another two-man team; the winner becomes the Warlord for a four-man team, which will fight another four-man team, etc.
Eventually, there will be two large armies fighting a melee, with the leader of the winning team being the overall warlord winner.
1st Round A defeats B, becomes Warlord for Team AB
C defeats D, becomes Warlord for Team CD
2nd Round Team CD defeats Team AB, C become Warlord for Team ABCD
3rd Round Team ABCD defeats Team EFGH, C is now Warlord for Team ABCDEFGH