Masterwork Weapons
Requiring the skill of a master craftsman, masterwork weapons are hard to come by, often found in only the grandest cities, or sometimes as the result of a quest to seek out an artisan capable of such complex work.
Masterwork weapons fall into one of several categories: Honed Edge, Perfectly Balanced, or Flawless. Masterwork weapons are primarily bladed weapons. Masterwork weapons if enchanted, permanently lose their masterwork bonuses.
Honed Edge: Masterwork weapons crafted to hurt. They provide a +1 bonus to damage rolls. (Keen, Honed)
Price: Honed Weapons Tend to be around 500gp above standard rates
Balanced: Masterwork weapons crafted to be easier to wield. They provide a +1 bonus to attack rolls. (ie. Balanced)
Price: Balanced Weapons Tend to be around 500gp above standard rates
Flawless: Masterwork weapons that are the pinnacle of craftsmanship. They provide a +1 bonus to attack and damage rolls. Flawless weapons are typically named by the craftsman. (Flawless, Peerless)
Price: Flawless Weapons Tend to be at least 1500gp above standard rates
Enchanting: Many Masterwork weapons are capable of being enchanted, but in such cases, the masterwork is ruined throught he enchanting process. Masterwork weapons made of mithril or adamantine or another incredible materials, are carefully crafted to accommodate enchanting. Peerless weapons may be Honed, Balanced or Flawless, and are considered the pinnacle of craftsmanship. Masterwork weapons made of Mithril or Adamantine still run the risk of having their masterwork statuses lost, but have the chance to maintain them. Any lesser materials will always lose their masterwork.
Damaging the weapon: Masterwork weapons are still weapons, and if they are not cared for properly, can be damaged, even if they were peerless enchanted weapons.
When you roll a natural 1 on your attack roll, you roll a second d20, on a second natural 1, the weapon is damaged and loses its masterwork. Even if repaired by a skilled smith, or the mending spell, it does not retain its attack or damage bonus.