Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 59

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 59
---
. Such regulation may impact the availability, 
 liquidity and cost of derivative instruments. While any regulatory or legislative activity       
 may not necessarily have a direct, immediate effect upon the Fund, it is possible that, upon     
 implementation of any future measures, they could potentially limit or completely restrict       
 the ability of the Fund to use certain derivative instruments as a part of its investment        
 strategy, increase the costs of using these instruments or make them less effective. Limits      
 or restrictions applicable to the counterparties with which the Fund engages in derivatives      
 transactions could also prevent the Fund from using these instruments or affect the pricing      
 or other factors relating to these instruments, or may change the availability of certain        
 investments. There can be no assurance that such legislation or regulation will not have         
 a material adverse effect on the Fund or will not impair the ability of the Fund to utilize      
 certain derivatives transactions or achieve its investment objective.                            |

| ● | The Investment Adviser has claimed an                                                           
 exclusion from the definition of the term “commodity pool operator” under the                   
 Commodity Exchange Act pursuant to CFTC Rule 4.5. Accordingly, the Investment Adviser           
 is currently not subject to registration or regulation as a commodity pool operator under       
 the Commodity Exchange Act with respect to the Fund. If the Investment Adviser was unable       
 to claim the exclusion with respect to the Fund, the Investment Adviser would become subject    
 to registration and regulation as a commodity pool operator, which would subject the Investment 
 Adviser and the Fund to additional registration and regulatory requirements and increased       
 operating expenses. The Fund intends to limit its investments such that the Investment Adviser  
 may continue to claim the exclusion with respect to the Fund, which may limit the Fund’s        
 ability to use certain Strategic Transactions, including futures, options on futures and        
 swaps.                                                                                          |

Options

An option is a contract that gives the holder
of the option the right, but not the obligation, to buy from (in the case of a call option) or sell to (in the case of a put option)
the seller of the option (the “option writer”) the underlying security at a specified fixed price (the “exercise price”)
prior to a specified date (the “expiration date”). The buyer of the option pays to the option writer the option premium,
which represents the purchase price of the option.

Exchange-traded options are issued by a regulated
intermediary such as the Options Clearing Corporation (“OCC”), which guarantees the performance of the obligations of the