Lag compensation is run on the server side. When the action of firing reaches the server, the server rewinds time to see where your opponents were standing when you fired your shot. This has the benefit of not having to lead your shots for hitscan weapons, but the disadvantage of being killed a fraction of a second after you take cover.
My game is going to be mainly aim based and my players should expect to kill an opponent if they point directly at their head (Like CS:GO and other source games).
Here is a video that explains it in more detail : How It Works: Lag compensation and Interp in CS:GO - YouTube
Is it possible to do this rewind when the “Line Trace By Channel” function or similar is called?