Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 56

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 56
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ivatives are highly specialized instruments that require investment techniques and risk analyses different from other portfolio investments.
The use of derivative instruments requires an understanding not only of the underlying instrument but also of the derivative itself.
Certain risk factors generally applicable to derivative transactions are described below.

| ● | Derivatives are subject to the risk                                                           
 that the market value of the derivative itself or the market value of underlying instruments  
 will change in a way adverse to the Fund’s interests. The Fund bears the risk that            
 the Investment Adviser may incorrectly forecast future market trends and other financial      
 or economic factors or the value of the underlying security, index, interest rate or currency 
 when establishing a derivatives position for the Fund.                                        |

| ● | Derivatives may be subject to pricing                                                          
 or “basis” risk, which exists when a derivative becomes extraordinarily expensive              
 (or inexpensive) relative to historical prices or corresponding instruments. Under such market 
 conditions, it may not be economically feasible to initiate a transaction or liquidate a       
 position at an advantageous time or price.                                                     |

| ● | Many derivatives are complex and often                                                   
 valued subjectively. Improper valuations can result in increased payment requirements to 
 counterparties or a loss of value to the Fund.                                           |

| ● | Using derivatives as a hedge against                                                            
 a portfolio investment presents the risk that the derivative will have imperfect correlation    
 with the portfolio investment, which could result in the Fund incurring substantial losses.     
 This correlation risk may be greater in the case of derivatives based on an index or other      
 basket of securities, as the portfolio securities being hedged may not duplicate the components 
 of the underlying index or the basket may not be of exactly the same type of obligation as      
 those underlying the derivative. The use of derivatives for “cross hedging” purposes            
 (using a derivative based on one instrument as a hedge on a different instrument) may also      
 involve greater correlation risks.                                                              |

<div align='center'>S-3</div>

| ● | While using derivatives for hedging                                                       
 purposes can reduce the Fund’s risk of loss, it may also limit the Fund’s opportunity     
 for gains or result in losses by offsetting or limiting the Fund’s ability to participate 
 in favorable price movements in portfolio investments.                                    |

| ● | Derivatives transactions for non-hedging                                                         
 purposes involve greater risks and may result in losses which would not be offset by increases   
 in the value of portfolio securities or declines in the cost of securities to be acquired.       
 In