Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 67

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 67
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 requirements. As the writer
of options on futures contracts, the Fund would also be subject to initial and variation margin requirements on the option position.

Options on futures contracts 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. The Fund
may cover an option on a futures contract by purchasing or selling the underlying futures contract. In such instances the exercise of
the option will serve to close out the Fund’s futures position.

Additional Risks of Futures Transactions.
The risks associated with futures contract transactions are different from, and possibly greater than, the risks associated with investing
directly in the underlying instruments. Futures are highly specialized instruments that require investment techniques and risk analyses
different from those associated with other portfolio investments. The use of futures requires an understanding not only of the underlying
instrument but also of the futures contract itself. Futures 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:

| ● | The risk of loss in buying and selling                                                    
 futures contracts can be substantial. Small price movements in the commodity underlying a 
 futures position may result in immediate and substantial loss (or gain) to the Fund.      |

| ● | Buying and selling futures contracts                                                          
 may result in losses in excess of the amount invested in the position in the form of initial  
 margin. In the event of adverse price movements in the underlying commodity, security, index, 
 currency or instrument, the Fund would be required to make daily cash payments to maintain    
 its required margin. The Fund may be required to sell portfolio securities in order to meet   
 daily margin requirements at a time when it may be disadvantageous to do so. The Fund could   
 lose margin payments deposited with a futures commodities merchant if the futures commodities 
 merchant breaches its agreement with the Fund, becomes insolvent or declares bankruptcy.      |

| ● | Most exchanges limit the amount of                                                           
 fluctuation permitted in futures contract prices during any single trading day. Once the     
 daily limit has been reached in a particular futures contract, no trades may be made on that 
 day at prices beyond that limit. If futures contract prices were to move to the daily limit  
 for several trading days with little or no trading, the Fund could be prevented from prompt  
 liquidation of a futures position and subject to substantial losses. The daily limit governs 
 only price movements during a single trading day and therefore does not limit the Fund’s