Yeah I'm having a hard time figuring out what this item does, the description really doesn't make sense....

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"Real music is about far off lands, deals with the devil, and where you'd find smoke in relation to water." Otto Mann

it prevents damage. ward cloak 3 for example reduces damage dealt to you by 45%. if an attack would do, say 100 points of damage to your characters health, it would deal only 55 points. ward cloak 3 also prevents 70% of damage dealt to your guard units. (making an attack that would deal 100 damage to them deal only 30 damage) lastly it prevents damage that an enemy catapult will do to an allied objective (ie. destroy the catapults before they destroy the castle walls.) this is only important on like 2 missions.