Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 64

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 64
---
 on securities. Rather than the right to buy or sell a single security at a specified
price, options on foreign currencies give the holder the right to buy or sell foreign currency for a fixed amount in U.S. dollars. Options
on foreign currencies are traded primarily in the OTC market, but may also be traded on United States and foreign exchanges. The value
of a foreign currency option is dependent upon the value of the underlying foreign currency relative to the U.S. dollar. The price of
the option may vary with changes in the value of either or both currencies and has no relationship to the investment merits of a foreign
security. Options on foreign currencies are affected by all of those factors which influence foreign exchange rates and foreign investment
generally. As with other options, the Fund may close out its position in foreign currency options through closing purchase transactions
and closing sale transactions provided that a liquid secondary market exists for such options. Foreign currency options written by the
Fund may be covered in a manner similar to the covering of other types of options, by holding an offsetting financial position.

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

<div align='center'>S-7</div>

| ● | The exercise of options written or purchased                                              
 by the Fund could cause the Fund to sell portfolio securities, thus increasing the Fund’s 
 portfolio turnover.                                                                       |

| ● | The Fund pays brokerage commissions                                                              
 each time it writes or purchases an option or buys or sells an underlying security in connection 
 with the exercise of an option. Such brokerage commissions could be higher relative to the       
 commissions for direct purchases of sales of the underlying securities.                          |

| ● | The Fund’s options transactions                                                          
 may be limited by limitations on options positions established by the exchanges on which 
 such options are traded.                                                                 |

| ● | The hours of trading for exchange                                                            
 listed options may not coincide with the hours during which the underlying securities are    
 traded. To the extent that the options markets close before the markets for the underlying   
 securities, significant price and