Just read the website.
First there is a 1.5% mgmt fee annually, paid in the form of equity. So, if they hold the painting for 10 years, they would own 15% of it. Seems like a EXTREMELY high fee for something like this. What they really don't do anything until they decide to sell it. I am sure they still charge for storage and other expenses (Which they most likely provide at a HIGH premium).
But wait there is more.......
They take 20% of the profit on the sale of the art right off the top. It is calculated based upon the original sales price, so it doesn't take into account the fees paid to Masterworks or the expenses incurred by the investment group.
But if you act now you will also receive.......
An upfront fee.... per website..."one time expense allocation for artwork sourcing, securitization and platform costs". Wouldn't be surprised if it is 10% or more.
Now, I haven't read the agreement, but these sort of 'legal fraud' investments usually have some sort of 2 share classes - one for masterworks and one for the investors. Usually the masterwork share class get preferential payment at full value, before a loss (if there is one) or they might not absorb any of the costs of the investment or sale, while the investor class get hosed.