A reserve ratio above 100% indicates that an exchange holds more assets than customer deposits, providing a cushion against market volatility, sudden withdrawals, or unexpected liabilities.

While Binance maintains a BTC reserve ratio above 100%, its most recent Proof of Reserves (as of March) shows a 100.77% ratio, just barely above parity. This slim margin offers limited protection in the event of a sharp uptick in withdrawals, leaving little room for operational error.

In contrast, Bitget reports a BTC reserve ratio of 332%, suggesting it could cover withdrawal demands over three times the current user deposits. Its overall reserve ratio of 191% significantly exceeds the industry norm, offering a stronger defense against liquidity or solvency risks.

Such over-collateralization positions Bitget as a more conservatively managed exchange in terms of reserve backing, potentially enhancing user confidence in volatile market conditions.