Does accuracy lower for higher level weapons?

Yesterday I was playing with my friend who managed to get a 2H axe 3 level above his own and he got -60% accuracy. Later he got another one 1 level above and I got a dagger for my rogue 1 level above and while he had -20% accuracy I only had -10%. So the formula should be:

• 1H weapon: -10% accuracy for each weapon level above your own
• 2H weapon: -20% accuracy for each weapon level above your own

There is no indicator on the weapon, but yes, your second thought is correct.

Equipping a weapon with a level higher than your character level will result in decreased weapon accuracy (at least 20%) until you meet the level requirements.

There is no current penalty for equipping armor or jewelry of a higher level requirement.