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DO i need to cloak my affiliate links ?

By cloaking what do you mean exactly? ROFLMAO
If you think you will show different content to certain people that might be possible.
As far as SE index bots I know from my server logs they are the ones 'cloaking' their identities :D
The joke is on you!
 
You cloak links so they look better for the readers. When you hover your mouse pointer on a link, at the bottom of the web browser the link address will be shown. People might get scared away if they see a link with a lot of variables and affiliate link inside. Instead, by cloaking, they will see a nice link and it will be more likely to get clicks.

If you use WordPress, just search for a cloaking plugin, there are plenty.
 
barry@paragon-DS-7:~$ cowsay arrf
Code:
______
< arrf >
------
       \   ^__^
        \  (oo)\_______
           (__)\       )\/\
               ||-----w |
               ||      ||

( WTF Dude! ) 
----------- 
       o   ^__^ 
        o  (oo)\_______ 
           (__)\       )\/\ 
               ||----w | 
               ||     ||
 
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