Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 68

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 68
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 potential losses.                                                                            |

| ● | Index futures based upon a narrower                                                       
 index of securities may present greater risks than futures based on broad market indexes, 
 as narrower indexes are more susceptible to rapid and extreme fluctuations as a result of 
 changes in value of a small number of securities.                                         |

<div align='center'>S-9</div>

Swap Contracts and Related Derivative Instruments

A swap contract is an agreement between two
parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments
calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. Most swap agreements provide
that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment
streams are netted out, with only the net amount paid by one party to the other). The Fund’s obligations or rights under a swap
contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based
on the relative values of the positions held by each counterparty.

Historically, swap transactions have been
individually negotiated non-standardized transactions entered into in OTC markets and have not been subject to the same type of government
regulation as exchange-traded instruments. However, the OTC derivatives markets have recently become subject to comprehensive statutes
and regulations. In particular, in the U.S., the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank
Act”) requires that certain derivatives with U.S. persons must be executed on a regulated market and a substantial portion of OTC
derivatives must be submitted for clearing to regulated clearinghouses. As a result, swap transactions entered into by the Fund may become
subject to various requirements applicable to swaps under the Dodd-Frank Act, including clearing, exchange-execution, reporting and recordkeeping
requirements, which may make it more difficult and costly for the Fund to enter into swap transactions and may also render certain strategies
in which the Fund might otherwise engage impossible or so costly that they will no longer be economical to implement. Furthermore, the
number of counterparties that may be willing to enter into swap transactions with the Fund may be limited if such transactions are subject
to increased regulation.

Swap agreements allow for a wide variety of
transactions. For example, fixed rate payments may be exchanged for floating rate payments, U.S. dollar