We evaluate the leverage levels of crypto exchanges to assess liquidity, bankruptcy risk, and the level of perpetual futures trading supported by crypto reserves.

Binance stands out with strong reserves despite expanding open interest this year. Binance's reserves of Bitcoin, Ethereum, and USDT far exceed open interest. Binance's leverage ratio is the most stable among major exchanges, ranging from 12.8 (12/2023) to 13.5 (12/2024). This stability, along with a 2.6 times increase in Bitcoin open interest, indicates Binance's ability to handle market volatility.

In contrast, Gate.io, Bybit, and Deribit have the highest leverage ratios at 106, 86, and 32, respectively, indicating that Bitcoin open interest exceeds or is close to reserves. Monitoring leverage is crucial, as high leverage contributed to the collapse of FTX in 11/2024.