Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 108

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 108
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intermediary such as the Options Clearing Corporation (“OCC”), which guarantees the performance of the obligations of the
parties to such option. OTC options are purchased from or sold to counterparties through direct bilateral agreement between the counterparties.
Certain options, such as options on individual securities, are settled through physical delivery of the underlying security, whereas
other options, such as index options, are settled in cash in an amount based on the value of the underlying instrument multiplied by
a specified multiplier.

Writing Options. The Fund may write
call and put options. As the writer of a call option, the Fund receives the premium from the purchaser of the option and has the obligation,
upon exercise of the option, to deliver the underlying security upon payment of the exercise price. If the option expires without being
exercised the Fund is not required to deliver the underlying security but retains the premium received.

<div align='center'>S-5</div>

The Fund may write call options that are “covered.”
A call option on a security is covered if (a) the Fund owns the security underlying the call or has an absolute and immediate right
to acquire that security without additional cash consideration upon conversion or exchange of other securities held by the Fund; or (b) the
Fund has purchased a call on the underlying security, the exercise price of which is equal to or less than the exercise price of the
call written.

Selling call options involves the risk that
the Fund may be required to sell the underlying security at a disadvantageous price, below the market price of such security, at the
time the option is exercised. As the writer of a covered call option, the Fund gives up the opportunity during the option’s life
to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price
of the call, but the Fund retains the risk of loss should the price of the underlying security decline.

The Fund may also write uncovered call options
(i.e., where the Fund does not own the underlying security or index). Similar to a naked short sale, writing an uncovered call
creates the risk of an unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus
increasing the cost of buying those securities to cover the call option if it is exercised before it expires. There can be no assurance
that the securities necessary to cover the call option will be available for purchase. Purchasing securities to cover an uncovered call
option