The private keys to your blockchain assets are generated and encrypted locally and stored on your device. These keys are never stored in the cloud and they remain 100% for your eyes only, 100% in your control.
The FEX backup system only backs up encrypted metadata (transaction data, personal notes, exchange history) – no keys are ever stored on any of our servers. In addition, this metadata is encrypted so the backup remains secure to you with your password. This is another way of saying your backup files are useless to anyone else, only you with your password, can read and use your data.