Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 119

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 119
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 than inflation, real interest rates may rise, leading to a decrease in value of an inflation swap agreement.

Swaptions. An option on a swap agreement,
also called a “swaption,” is an option that gives the buyer the right, but not the obligation, to enter into a swap on a
future date in exchange for paying a market based “premium.” A receiver swaption gives the owner the right to receive the
total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a
specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by
one of the counterparties.

General Risks of Swaps. The risks associated
with swap transactions are different from, and possibly greater than, the risks associated with investing directly in the underlying
instruments. Swaps are highly specialized instruments that require investment techniques and risk analyses different from those associated
with other portfolio investments. The use of swaps requires an understanding not only of the underlying instrument but also of the swap
contract itself. Swap transactions may be subject to the risk factors generally applicable to derivatives transactions described above,
and may also be subject to certain additional risk factors, including:

| ● | Some swap agreements are not traded                                                           
 on exchanges and not subject to government regulation like exchange-traded derivatives. As    
 a result, parties to such swap agreements may not be protected by such government regulations 
 as participants in transactions in derivatives traded on organized exchanges.                 |

| ● | In addition to the risk of default                                                           
 by the counterparty, if the creditworthiness of a counterparty to a swap agreement declines, 
 the value of the swap agreement would be likely to decline, potentially resulting in losses. |

| ● | It is possible that further developments                                                 
 in the swaps market, including potential regulatory developments, could adversely affect 
 the Fund’s ability to utilize swaps, terminate existing swap agreements or realize       
 amounts to be received under such agreements.                                            |

Structured Products

The Fund also may invest a portion of its
assets in structured notes and other types of structured investments (referred to collectively as “structured products”).
A structured note is a derivative security for which the amount of principal repayment and/or interest payments is based on the movement
of one or more “factors.” These factors include, but are not limited to, currency exchange rates, interest rates (such as
the prime lending rate or SOFR