Masterworking

Masterworking is the ability of divinely inspired or magically enabled Smiths to improve a weapon beyond its normal capabilities.
Check out the following table for the different weapon types and their effects

Material/Quality	Hit Bonus	Damage Bonus	Special Attributes	Value Modifier
Iron	+0	-1	50% to break on Crit Fail	0.5x
Steel	+0	+0	n/a	1x
Masterworked Iron	+1	+0	50% to break on Crit Fail	2.5x
Masterworked Steel	+1	+1	n/a	5x
Mithril	+2	+2	n/a	25x
Masterwork Mithril	+3	+3	n/a	100x