Yes. The next patch is supposed to fix the issues with some single target spells breaking your cloak. AoE spells are meant to break your cloak.

leepalmer95 wrote: »

Lenikus wrote: »

yes, tho' it's currently a bit broken, so it is useless if there are any dots running on you or because of you

doesn't one of the morphs get rid of 3 Dot's?

Four DoTs actually.

Some DoTs do not get removed correctly though.

For example, have been able to consistently have Cloak break when fighting Bears that cause bleeding.

Just too lazy to try and go through and test every DoT in game like I did back when I had them fix the Nightblade's DoTs breaking their own Cloak.

OP, it makes you invisible to other players, and a well-built Magickablade can stay invisible in Cyrodiil pretty much indefinitely.
Need be aware that Cloak has counters such as Magelight and Detection Potions; with Detection Potions being the only one to really worry about as it is the only one that is actually powerful enough to counter Cloak in a reasonable way.

Source: Nightblade since Beta -- my Magickablade's spec uses both Cloak spam and Detection + Magicka Regen + Spell Damage potions in PvP.

There has been some talk of making Detection Potions no longer go through Cloak -- if that happens, Magickablade will be massively overpowered for a month or two until ZoS hits Cloak with a nerf to compensate for the lack of remaining meaningful counters in game.