The Cloth is a Daggerfallian aristocratic privilege. In a ceremony where the monarch personally ties a piece of unsullied white cloth around the noble's wrist, they are exempted from personal military service, and permitted to send a chosen retainer to present their banners to the Crown and command them in their stead. Once granted, the Cloth is hereditary unless expressly stripped for any reason. It is important to note that this privilege does not prevent a noble from partaking in warfare; over the centuries, many have disregarded it to personally lead their retainers into war - whether out of preference or necessity.
The privilege of the Cloth is one of the fundamental differences between the high nobility and the service aristocracy that is the chevalier families. A chevalier may never be granted the Cloth; to do so would be to remove the entire purpose of their rank.