particles LOD bug?

There are 3 LOD level on the picture. Particles will never appear if emitter are turned off on LOD 2(like shown in the pic.) and particles object spawnes far from player start. Is it known bug? Or it’s a feature?

If LOD emmiters turned on and all options are turned off FPS very few with 200+ particle objects.
How to solve issue i have couple hundreds torches on a level?