Risk can only be eliminated though decentralization, or in other words if the risk is segregated. Socializing the risk is the worst thing possible to do, because that guaranteees that everyone loses in the end and makes people irresponsible so the losses will be huge.

I am growing wary of these exchanges that centralize a lot of money and allegedly work on fractional reserves, they do the same mistake as the banking system.

But decentralized exchanges come too, so yes in that aspect the risk is lowered.