There should be a section of perk bubbles that you unlock, selecting each perk has a different effect.
Tattered/torn
New condition
Waist length
Ankle length
(For scarves, instead of waist/ankle length it would be super short versus shoulder - blade length)
As well as a toggle for how your current shader affects your cloak, example;
If a shader has Black, gold, and grey, the default affect of the shader on the cloak is that it is mostly black, with some gold on the top and grey on the bottom.
You cycle the node, much like you do with chroma, and it changes to mostly gold, with some grey on the top, and black on the bottom. Cycle it again, and the cloak is grey with black on top, gold on bottom.
The color-cycling for shaders should also apply to exotic armor pieces.