Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 57

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 57
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 the event that the Fund enters into a derivatives transaction as an alternative to purchasing 
 or selling the underlying instrument or in order to obtain desired exposure to an index or       
 market, the Fund will be exposed to the same risks as are incurred in purchasing or selling      
 the underlying instruments directly.                                                             |

| ● | The use of certain derivatives transactions                                                   
 involves the risk of loss resulting from the insolvency or bankruptcy of the other party      
 to the contract (the “counterparty”) or the failure by the counterparty to make               
 required payments or otherwise comply with the terms of the contract. In the event of default 
 by a counterparty, the Fund may have contractual remedies pursuant to the agreements related  
 to the transaction.                                                                           |

| ● | Liquidity risk exists when a particular                                                       
 derivative is difficult to purchase or sell. If a derivative transaction is particularly      
 large or if the relevant market is illiquid, the Fund may be unable to initiate a transaction 
 or liquidate a position at an advantageous time or price.                                     |

| ● | Certain derivatives transactions, including                                                    
 over-the-counter (“OTC”) options, swaps, forward contracts, certain options on                 
 foreign currencies and other OTC derivatives, are not entered into or traded on exchanges      
 or in markets regulated by the U.S. Commodity Futures Trading Commission (“CFTC”)              
 or the SEC. Instead, such OTC derivatives are entered into directly by the counterparties      
 and may be traded only through financial institutions acting as market makers. OTC derivatives 
 transactions can only be entered into with a willing counterparty. Where no such counterparty  
 is available, the Fund will be unable to enter into a desired transaction. There also may      
 be greater risk that no liquid secondary market in the trading of OTC derivatives will exist,  
 in which case the Fund may be required to hold such instruments until exercise, expiration     
 or maturity. Many of the protections afforded to exchange participants will not be available   
 to participants in OTC derivatives transactions. OTC derivatives transactions are not subject  
 to the guarantee of an exchange or clearinghouse and as a result the Fund would bear greater   
 risk of default by the counterparties to such transactions.                                    |

| ● | The Fund may be required to make physical                                                      
 delivery of portfolio securities underlying a derivative in order to close out a derivatives   
 position or to sell portfolio securities at a time or price at which it may be disadvantageous 
 to do so in order to obtain cash to close out or to maintain a derivatives position.