I do not hold funds on exchanges, it is not safe at all. Exchange can be hacked, your account can be suspended/blocked/frozen. I hold on the wallets with full control of private keys, mnemonic phrases, etc. I use exchanges only to sell/buy/convert some assets and withdraw it immediately.
yes for most exchanges are not liable in case of hacking, but binance will still replace our assets (like some time ago) when binance was hacked.
but it is highly recommended for everyone to keep all their assets in their personal wallet so they can sleep soundly