#1MASTERWORKS Understanding Art as an Asset Class May 2021 THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION#2Masterworks: Pioneer in Art Securitization We deliver art market access to the entire investor community Pioneer in Securitized Art Investment We are the first-mover in SEC-qualified art investment offerings and the only platform of scale Self-Directed Investor Platform Through www.masterworks.io, we have cultivated a broad investor community of 140,000+ members seeking returns with low correlation with other financial assets Data-Driven Approach Our proprietary data-driven research helps us target artists to acquire and build investor confidence in art as an asset class FEATURED IN The New York Times NEW YORK CAN You're invited to join an exclusive community investing in blue-chip art. ✔Invest in multimillion-dollar paintings Attractive historical price appreciation Buy and sell shares on secondary market ✔Receive proceeds when the painting sells REC Buy and Sell Shares Historically, art investments typically lacked any consistent access to liquidity. Introduced in early 2020, our Secondary Market is the first online platform to enable the buying and selling of art investments, providing the potential for liquidity when life demands it. GO TO SECONDARY MARKET 115pprovide effect amonning yo your Forbes Contemporary Art Market Performance S&P 500 (1995-2000) ArkDec Kaws Secondary Market 1 pist your of Panda istegaer shou BAI BUYAWELL BERNAR Ⓡ Tukal SM CNBC THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 2#3Market Size and Securitization Opportunity Art bears comparable scale to other private asset classes without any securitized investment products Relative Sizes for Private Assets # of Firms: 3. 4. Private Debt (1) Private Real Assets (2) POO $1.6 $1.7 trillion trillion $0.8 trillion THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES 160+ Funds 500+ Funds Art (3) MASTERWORKS Sources: Preqin, McKinsey & Company: Private markets come of age: McKinsey Global Private Markets Review 2019. Deloitte, ArtTactic: Deloitte Art and Finance Report 2019. 1. Private market assets under management Investing in debt 2. Private market assets under management Investing in real estate, natural resources, and infrastructure Estimated value of artwork held by individuals. Estimated based on surveys of wealth allocation to art and estimates of total wealth held by individuala Private market assets under management Investing in private equity Private Equity (4) $3.4 trillion 9,000+ Firms THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 3#4Macro Drivers of Art Market Returns Massive demand-supply imbalance with a growing wave of capital chasing an ever scarcer pool of assets N 3 Demand Growth Supply Scarcity THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Global Asset Secular growth in purchasing power among the global ultra-high-net-worth community Decreasing available supply as artwork is acquired by museums and permanent collections Tangible, mobile, internationally marketable store of value that can be sold across locales/currencies 6.1% CAGR Number of Dollar Millionaires from 2019-2024 (Credit Suisse) 15% Share Art Purchases in 2020 by Museums and Arts Institutions (UBS, ArtBasel) 64% Share Collectible Wealth Held Outside of North America (Deloitte) THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 4#5Past Art Investment Research Collaboration In the past we have collaborated with major research teams such as Goldman Sachs, Citi, Barings, and others to better understand the asset class and publish thought leadership citi Research Collaboration THE GLOB AND COVID Innovating and Adapting Resilience in a Time of Turmoil The market remained rent in 2020 and burbulence brought on by the COD 19 pandemic sponse to the crisis in inaling the foundation for a deeper nome pervanent shit as the industry adaptshing preferences and demophis FIRST IN CLASS in the first naman na 200 the art market supertormectan major axwith Contemporary art achieving the margest quina. Lowongoing caters, and a growing region of a part dvere could further s KOM 32% - 404 SW m -35% 34 Tarta dei seguentat de som i van daal Altamine 43% DIN Citi GPS 1m ning TT 200 TAP AUCTION HOUSES Leyend onction Jug 10 Sot Ch P: 52% 413 120% LOA C v min far. For evig tancata una quotaien i Matrée të KX0 mm min (15. A rapida men man kanan atau permende 1200. ar Empresa innamatkan naman nim www.www NECESSITY IS THE MOTHER OF INNOVATION Auction mould the dotal was during the pandemic through their sirbaani nakon avards. These and other digital innovadora ripave Shading locaties at the Industry LINDET JÕEL A KENG Intelectioqualvos dan 20 Estate GALLERES Pent*72 Poin ONE The i mate 10% - 30 37% in 20 20m Contenay pration INTERNATIONAL ART FAIRE Launched vital tore wit and g ny De imported ring ODRE Art: The Alternative Real Asset Mar Thought Leadership 12000 The recent global humo hated many mor allocation, meal of sometimes called tangible assets, includi Tural urces.commode and precious m clable by invatar today through wi mchange traded funds (ETPAL closed and funch. Eto, priv Among the gold in the clamp and during market dislocation and recently referred to ai "Òm O. Bach FÖRSK The Market for Jean-Michel Basquiat: How One Artist's Prices Have Continued to Defy the Odds M Jean-Michel BasqUAR (1940-1988) has proven to be one of the greatest form in the art manet over the decades. vobis Hetime, Basquiat was one at the most sought-after artist in the world, and even prior to his pic death at the age of 21 hisprosed stocked. Be best comprised of larger prings on asignature stretcher ber frame, to tackhouquare market has performed once 1946 horingcations of downturna in the broader economy THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 5#6How We Understand Art Market Performance Our in-house research team focuses on understanding returns in the art market 2 3 Data Collection Index Construction THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Proprietary Metrics Collected data for 400,000+ auction transactions comprising 5 million+ data points Built the leading indices in the art market to understand returns by segment Developed in-house analytics to assess artist and artwork level momentum 5 million Data points for auction sales starting as early as 1960 ▪ Parth ไม่ # THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 6#72020 Demonstrated the Art Market's Resiliency Despite a global pandemic, the Post-War and Contemporary Art market generated strong financial returns in 2020 N 3 Strong Performance Online Sales Boom THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Contemporary Market Expands Amidst significant volatility across asset classes, price performance remained exceptionally strong As a result of COVID, auction houses, galleries and dealers demonstrated their ability to shift online Post-War and Contemporary Art continued to gain market share, reaching an all-time high in 2020 15.1% Post-War and Contemporary 2020 Return 511% Increase in Total Sales via Online Marketplaces (Art Tactic) 55% Post-War and Contemporary Art's Share of Transaction Volume (UBS, ArtBasel) THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 7#8Expectations for Equity Returns are Low With equities at all-time highs, the top equity research teams are expecting long-term equity returns well below the 9.5% returned by the S&P over the last 25 years BLACKROCK Firm (2) J.P.Morgan Ⓡ MORNINGSTAR research affiliates Vanguard m 3. 4 Source: Morningstar, Inc. 1. Ⓡ European equities 10-15 year horizon U.S. Large Caps Estimate le for all non-U.S. equities U.S. Equities 5.00% 4.10% (0.10%) 2.00% (³) THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES 3.70% - 5.70% Developed-Markets Equities 7.00% (¹) 5.00% - 6.00% 4.80% 6.30% 7.00% - 9.00% (4) Emerging Markets Equities 6.40% 7.20% 4.50% 7.90% 7.00% - 9.00% (4) THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION#9Index (1995= 1) Historical Performance Over Time Contemporary art has significantly outperformed the S&P over the past 25 years Value-Weighted Art Index Performance vs. S&P 500 (Total Return) Indices Since 1995 Based on repeat-sales from 1995 to 2020 27.00 22.00 17.00 12.00 7.00 2.00 1995 1996 3. 1997 1998 1999 2002 2003 Contemporary Art 2006 2007 2008 THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES 2009 2011 S&P 500 (includes dividends) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Contemporary Art 14.0% annualized return(¹)(2) S&P 500 Total Return 9.5% annualized return(3) 1. Source: Internal Masterworks analyals. Yahoo Finance. Index shown through 2020. Index data updated as of December 31st, 2020. Notes: There are significant differences between the asset classes presented. For additional Information, see Important Disclosures. Repeat-Sale Pair Index of Post-War and Contemporary Art (as defined by the applicable auction house) using Standard & Poor's CoreLogic Case-Shiller Home Price Indices Methodology. The Standard & Poor's CoreLogic Case-Shiller Home Price Indices Methodology results in a value-weighted Index. Auction results realized in a currency other that U.S. dollars have been converted using exchange rates provided by FRED (St. Louis Federal Reserve) at the time of the most recent sale. This adjustment is made to account for long-term exchange rate trends that would otherwise distort artworks performance. S&P 500 Total Return Index as of December 31st, 2020. THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION" SECTION OF THIS PRESENTATION 9 INDICES ARE UNMANAGED AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX INDICES ARE USED FOR COMPARATIVE MODELLING PURPOSES ONLY THE TIMING OF TRANSACTIONS RELATING TO AN ASSET OR PORTFOLIO, ADVISORY, AND TRANSACTION FEES, AND OTHER MANAGEMENT ACTIVITIES CAN CREATE SIGNIFICANT DIFFERENCES BETWEEN THE PERFORMANCE OF AN INDEX AND AN INVESTMENT SEEKING SIMILAR OR SUPERIOR RELATIVE PERFORMANCE RESULTS#10Outperformance and Low Correlation Art's attractive long-term performance and low correlation relative to traditional asset classes 25-Year Annualized Performance Contemporary Art Market (1) and Select Asset Classes: 1995 - 2020 25-Year Annualized Returns Contemporary Art S&P 500 Global Equities 25-Year Correlation Factor Contemporary Art Market (1) and Select Asset Classes: 1995 - 2020 US Corporate Bonds US Housing Contemporary Art Gold 14.0% Contemporary Art 1.00 (0.06) (0.01) (0.29) (0.08) S&P 500 0.20 9.5% S&P 500 1.00 0.95 0.35 0.28 THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES (0.10) Global Equities US Corporate Bonds 7.7% Global Equities 1.00 0.34 0.32 0.10 6.1% US Corporate Bonds 1.00 0.10 0.39 US Housing 4.3% US Housing Correlation <.1 1.00 (0.23) Sources: Internal Masterworks analyala. FRED (St. Loula Federal Reserve). MSCI Database. Yahoo Finance. Index shown through 2020. Index data updated as of December 31st, 2020. Notes: There are significant differences between the asset classes presented. For additional Information, see important Disclosures. 1. Repeat-Sale Pair Index of Post-war and Contemporary Art (as defined by the applicable auction house) using Standard & Poor's CoreLogic Case-Shiller Home Price Indices Methodology. Gold 6.5% Gold 1.00 THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 10 INDICES ARE UNMANAGED AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX INDICES ARE USED FOR COMPARATIVE MODELLING PURPOSES ONLY THE TIMING OF TRANSACTIONS RELATING TO AN ASSET OR PORTFOLIO, ADVISORY, AND TRANSACTION FEES, AND OTHER MANAGEMENT ACTIVITIES CAN CREATE SIGNIFICANT DIFFERENCES BETWEEN THE PERFORMANCE OF AN INDEX AND AN INVESTMENT SEEKING SIMILAR OR SUPERIOR RELATIVE PERFORMANCE RESULTS#11Contemporary Art's Low Loss Frequency Over the past 25 years, we estimate that Contemporary Art has experienced losses only 8% of the time measured over a 2-year investment horizon Loss Frequency Observed Over 2-Year Investment Horizons Contemporary Art Market (¹) vs. Selected Asset Classes: 1995 - 2020 Contemporary Art S&P 500 Total Return Global Equities US Housing Gold 0% 8% 10% 16% 16% 20% 20% 30% % of Periods with a Loss 36% THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES 40% Maximum Annualized Loss Observed Over 2-Year Investment Horizons Contemporary Art Market (¹) vs. Selected Asset Classes: 1995 - 2020 50% (18.2%) (19.1%) (14.7%) (16.7%) (11.4%) (9.7%) MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION" SECTION OF THIS PRESENTATION Maximum Loss Sources: Internal Masterworks analysis. FRED (St. Loula Federal Reserve). MSCI Database. Index shown through 2020. Index data updated as of December 31st, 2020. Notes: There are significant differences between the asset classes presented. For additional information, see Important Diaclosures. 1. Repest-Sale Pair index of Post-War and Contemporary Art (as defined by the applicable auction house) using Standard & Poor's Core Logic Case-Shiller Home Price Indices Methodology (8.3%) THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE 11 0.0% INDICES ARE UNMANAGED AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX INDICES ARE USED FOR COMPARATIVE MODELLING PURPOSES ONLY THE TIMING OF TRANSACTIONS RELATING TO AN ASSET OR PORTFOLIO, ADVISORY, AND TRANSACTION FEES, AND OTHER MANAGEMENT ACTIVITIES CAN CREATE SIGNIFICANT DIFFERENCES BETWEEN THE PERFORMANCE OF AN INDEX AND AN INVESTMENT SEEKING SIMILAR OR SUPERIOR RELATIVE PERFORMANCE RESULTS#12Art Outperforms During High Inflation Inflation is a Key Risk to Portfolio Returns in 2021 0 . 25.0% 20.0% 15.0% 10.0% 5.0% As the Fed remains committed to low interest rates, investors are preparing for the possibility of higher inflation in 2021 0.0% Contemporary art has demonstrated strong real returns in high inflation periods, and appears. well positioned for a "lower for longer" real rate environment Contemporary Art vs. Selected Assets - High Inflation¹ Average real return for periods during which inflation was equal to or higher than 3.0% 23.2% THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Contemporary Art 12.6% Contemporary Art Real Returns in High Inflation Periods (¹) Based on repeat-sales from 1985 to 2020 60.0% 40.0% 20.0% 0.0% 5.0% REITS 4.4% 31.7% Average Real Retur Higher inflation corresponds to higher real returns in Contemporary Art 2.5% 1987-1991 3.8% 3.2% 23.4% 2004-2008 S&P 500 Average Inflation 1986-2020 Emerging Market Equities Source: Internal Masterworks analyale. FRED (St. Loula Federal Reserve). MSCI Database. Yahoo Finance. BLS (Bureau of Labor Statistics). Index shown through 2020. Index data updated as of December 31st, 2020. Notes: There are significant differences between the asset classes presented. For additional Information, see Important Diaclosures. 1. 0.2% Gold 6.0% 4.0% 2.0% 0.0% Reflects the two highest 5-year average Inflation rates since 1885. Based on repeat-sales from 1985 to 2020. THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 12 INDICES ARE UNMANAGED AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX INDICES ARE USED FOR COMPARATIVE MODELLING PURPOSES ONLY THE TIMING OF TRANSACTIONS RELATING TO AN ASSET OR PORTFOLIO, ADVISORY, AND TRANSACTION FEES, AND OTHER MANAGEMENT ACTIVITIES CAN CREATE SIGNIFICANT DIFFERENCES BETWEEN THE PERFORMANCE OF AN INDEX AND AN INVESTMENT SEEKING SIMILAR OR SUPERIOR RELATIVE PERFORMANCE RESULTS#132021 Art Market Outlook With the wealth of billionaires at a record level and an increase in the number of young collectors, the market is poised to for continued price momentum 3 Ultra-High-Net Worth Growing Young Collectors Enter Market THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Positive Expectations for 2021 Both the number and wealth of billionaires reached all-time highs in 2020 Buyers under 40 accounted for 25% of bidders in online-only auctions (compared to 15% in live auctions) Gallerists, dealers and auction houses all believe total sales will improve in 2021 32% Growth in the wealth of billionaires in 2020 (UBS ArtBasel) 122% Growth in young collectors buying online (Sotheby's) 58% Percent of dealers expect sales to increase in 2021 (UBS ArtBasel) THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 344-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE MASTERWORKS FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 13#14Important Disclosure Information MASTERWORKS 14#15Important Disclosure Information The investment opportunities described in this document are speculative, involve a significant degree of risk, and are not suitable for all investors. An investor could lose all or a substantial amount of his, her or its investment. Any investment of a type described in this document may be highly illiquid and may be subject to restrictions on transfer. There may be no secondary market for the investment interest and none is expected to develop. The relevant investment may involve complex or specialized tax structures. Such investments are suitable only for sophisticated investors and require the financial ability and willingness to accept the significant risks inherent in such an investment for an indefinite period of time. Investors should consult their own finance, legal, accounting and tax advisor prior to making any investment. This document contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, or state other forward-looking information. Our ability to predict future events, actions, plans or strategies is inherently uncertain and actual outcomes could differ materially from those set forth or anticipated in our forward-looking statements. You are cautioned not to place undue reliance on any of these forward-looking statements. Materials may include composite returns of similar works selected by Masterworks based on public auction sales data. The data is used for comparative modelling purposes only. Each painting is unique and historical performance of the similar works is not a direct proxy for performance of the specific painting or the shares. There is no current market for the shares and performance of the shares will reflect costs and fees described in our SEC filings that are not reflected in the composite returns of similar works. Past performance may not be indicative of future performance. Important Disclosure. In these materials we may present comparisons of Artwork to other asset classes, however any such comparison is of limited value due to the fact that there are significant differences between these asset classes. Artwork is held exclusively for capital appreciation, similar to Gold and most private equity investments. By contrast, U.S. T-Bills and U.S. Government Bonds are held primarily for current yield, though their value changes with changes in prevailing market interest rates. The S&P 500, which represents a collection of stocks, Hedge Funds and Real Estate are typically held for a combination of current dividend yield and capital appreciation. Oil is a commodity that is traded by speculators and end users. Stocks, U.S. Government Bonds, U.S. T Bills, Oil and Gold are highly liquid and valuation is driven by price discovery through continuous trading among large and diverse pools of capital. Artwork, Real Estate, investments in Hedge Funds and Private Equity, all represent unique opportunities and are typically relatively illiquid. These types of investments are therefore more difficult to value and price than assets that trade regularly. In addition, the costs of art ownership and buying and selling artwork may differ materially from ownership and transactional costs associated with investing in the other asset categories presented in the table. MASTERWORKS 15#16Important Disclosure Information (Continued) Materials may include estimates of historical appreciation rates based on publicly available historical auction sales data for similar objects. These appreciation rates may be presented in graphs, charts, diagrams or as stand-alone statistics and may be presented as A chart or graph relating to certain segments of the overall art industry, a particular artist or a particular set of paintings selected for their similarity to a specific painting offered through www.masterworks.io (the "Site"). Historical Art sales price data is used for comparative modelling purposes only. Each painting is unique and historical performance of selected artwork is not a direct proxy for historical price performance of the specific painting or any investment in securities referenced in these materials or on the Site. There is no current market for any securities referenced in these materials or on the Site and any investment in such securities will reflect costs and fees described in SEC filings that are not reflected in the data presented for similar works. Masterworks strongly cautions investors not to place undue reliance on data presented for similar works. Regulation A Disclaimer: THE INFORMATION CONTAINED HEREIN NEITHER CONSTITUTES AN OFFER FOR NOR A SOLICITATION OF INTEREST IN ANY SPECIFIC SECURITIES OFFERING. FOR ANY PROPOSED OFFERING PURSUANT TO AN OFFERING STATEMENT THAT HAS NOT YET BEEN QUALIFIED BY THE SEC, NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FOR SUCH OFFERING HAS BEEN QUALIFIED BY THE SEC ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION. AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND. OFFERING CIRCULARS FOR MASTERWORKS OFFERINGS THAT HAVE BEEN FILED WITH THE SEC AND ARE NOT YET CONSUMMATED ARE AVAILABLE HERE. YOU MUST READ THE DOCUMENTS FILED WITH THE SEC, INCLUDING THE OFFERING STATEMENT FOR A PARTICULAR INVESTMENT, BEFORE MAKING AN INVESTMENT DECISION. THE INFORMATION IN THAT OFFERING STATEMENT WILL BE MORE COMPLETE THAN THE INFORMATION MASTERWORKS PROVIDED IN THIS PRESENTATION, AND COULD DIFFER IN IMPORTANT WAYS. Securities transactions and broker dealer activities are currently offered through a partnership with Independent Brokerage Solutions LLC MEMBER FINRA/SIPC ("IndieBrokers"). Masterworks.io and its affiliates are independent and unaffiliated with IndeBrokers. Any securities transactions or related activities offered by Masterworks.io associated persons are conducted in their capacities as registered representatives of IndeBrokers, or in their capacity as a "principal" to the transaction pursuant to SEC Rule 3a4-1.THIS PRESENTATION IS BEING CONDUCTED BY MASTERWORKS UNDER SEC RULE 3A4-1. THIS PRESENTATION IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE FIRM OR BROKER. PLEASE SEE "IMPORTANT DISCLOSURE INFORMATION" SECTION OF THIS PRESENTATION The value of investments and any income derived from them may go down as well as up. An investor can lose all or part of their invested capital. Past and projected performance of specific paintings or artists is not indicative of future results and is not intended to be comparable to performance of Masterworks-sponsored offerings, which include certain fees, profit-sharing and expenses that are not included in such performance. Masterworks, LLC is located at 497 Broome St., NY, NY 10013 MASTERWORKS 16