Monaco generates half its revenue from consumption taxes while active traders face venue funding rate spreads reaching 0.0081 percentage points per 8 hours.
Monaco generates 50% of its total government revenue from value-added tax and 0% from direct personal income tax. The principality eliminated personal income tax in 1869 under Sovereign Ordinance. State expenditure is funded through value-added tax levied at 20% on local consumption, real estate transfer duties ranging from 4.5% to 7.5%, commercial state monopolies on postal services and electricity, and a 33.3% corporate profit tax applied strictly to entities generating over 25% of their revenue outside the territory.
Over the past decade, the composition of Monaco residents shifted from passive retirees to active capital managers. Residency approval requires a minimum bank deposit, verification of financial independence, and physical presence in the territory for at least 183 days per calendar year. High-net-worth operators, quantitative traders, and fund managers relocate to Monaco to secure a 0% rate on personal capital gains and income. For traders operating in this tax regime, external tax friction disappears, leaving exchange trading fees and perpetual funding spreads as the primary cost drag on holding positions.
Capital held across derivative venues incurs variable carrying costs driven by funding rate spreads. Funding rates settle every 8 hours. The table below lists normalized 8-hour funding rates and 24-hour trading volumes across active perpetual contracts.
| Asset | Cheapest Venue for Long | MEXC 8h Rate | Bitget 8h Rate | OKX 8h Rate | 8h Spread | 24h Volume |
|---|---|---|---|---|---|---|
| BTC | MEXC | +0.0049% | +0.0066% | +0.0100% | 0.0051% | $7,538,737,992 |
| ETH | OKX | +0.0081% | +0.0100% | +0.0062% | 0.0038% | $7,186,478,068 |
| SOL | Bitget | -0.0072% | -0.0096% | -0.0020% | 0.0076% | $1,998,444,493 |
| SNDK | OKX | N/A | +0.0115% | +0.0035% | 0.0080% | $1,297,463,709 |
| TRUMP | OKX | N/A | +0.0050% | -0.0031% | 0.0081% | $1,087,069,313 |
| XAU | Bitget | +0.0100% | +0.0070% | +0.0110% | 0.0040% | $597,093,956 |
Execution fees further alter net holding efficiency. Default fee schedules across major derivative venues are outlined in the table below.
| Exchange | Futures Maker Fee | Futures Taker Fee | Spot Maker Fee | Spot Taker Fee |
|---|---|---|---|---|
| Bitget | 0.0200% | 0.0300% | 0.1000% | 0.1000% |
| Bybit | 0.0200% | 0.0550% | 0.1000% | 0.1000% |
| MEXC | 0.0000% | 0.0200% | 0.0000% | 0.0500% |
| OKX | 0.0200% | 0.0500% | 0.0800% | 0.1000% |
Venue selection directly alters position decay over extended holding windows.
Consider holding a long position in TRUMP perpetual contracts. The 8-hour funding rate on OKX is -0.0031%, meaning long positions receive payments from shorts. The 8-hour funding rate on Bitget is +0.0050%, meaning long positions pay shorts. The 8-hour funding spread between OKX and Bitget is 0.0081 percentage points.
Over a 30-day period, funding settles 90 times.
Holding a long position on OKX yields a net funding credit: 0.0031% multiplied by 90 settlements equals a 0.2790% credit relative to position size.
Holding a long position on Bitget incurs a net funding debit: 0.0050% multiplied by 90 settlements equals a 0.4500% charge relative to position size.
The net performance difference between venues over 30 days equals 0.2790% plus 0.4500%, which totals 0.7290% of total position size.
Trading fees change entry and exit friction. Opening and closing a position via taker orders on OKX incurs a 0.0500% fee on entry and 0.0500% on exit, totaling 0.1000% in execution fees. Opening and closing the same position via taker orders on MEXC incurs a 0.0200% fee on entry and 0.0200% on exit, totaling 0.0400% in execution fees.
Holding leveraged perpetual positions carries structural liquidation risk. Liquidations trigger automatically when collateral falls below maintenance margin requirements.
At 20x leverage, initial margin equals 5.0% of nominal position value. An adverse market move of 5.0% consumes the entire margin, causing instant liquidation. At 10x leverage, initial margin equals 10.0% of position value, where a 10.0% adverse move results in total capital loss on the position.
Adverse funding rates directly drain account collateral, shifting liquidation thresholds closer to current prices. On Bitget, holding a long SNDK position costs 0.0115% per 8 hours. Over 24 hours, three funding settlements reduce position collateral by 0.0345%. Over 100 days of flat price action, cumulative funding payments erode 3.4500% of nominal position value in margin, reducing the safety buffer against liquidation.
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