Definition
CExIndex (Crypto Exchange Index) is a neutral framework for describing and comparing crypto asset exchanges by summarizing multiple operational and governance dimensions into a single, reviewable profile.
The index is not a claim about price, market direction, or investment outcomes. It focuses on exchange characteristics that affect the quality and reliability of custody, trading, settlement, and customer experience.
In practice, a CExIndex assessment is best treated as a structured checklist and scoring rubric rather than a definitive ranking.
Why the index exists
Crypto exchanges vary significantly in how they operate: technology stack maturity, internal controls, disclosure practices, customer protections, and incident response. These differences can matter more than branding or trading volume when assessing operational risk.
CExIndex provides a consistent vocabulary for discussing these differences without relying on marketing claims or informal reputation signals.
Core dimensions
1) Reliability
Ability to remain available and execute core functions under normal and elevated load.
- Platform uptime, degraded-mode behavior, and peak-load performance
- Order execution stability and outage communication
- Deposit/withdrawal continuity and status reporting
2) Integrity
Correctness and fairness of market operations, records, and customer balances.
- Trade and balance accuracy; reconciliation practices
- Market surveillance and manipulation controls
- Auditability of changes and operational traceability
3) Resilience
Ability to prevent, absorb, and recover from incidents (technical or organizational).
- Security posture, key management, incident response maturity
- Backup/restore and disaster recovery capabilities
- Operational continuity planning and postmortem practices
4) Transparency
Clarity of policies, disclosures, and real-world operating constraints.
- Fees, custody model, withdrawal policies, and downtime disclosures
- Proof-of-reserves / attestations (where applicable) and reporting clarity
- Clear terms for account actions, freezes, and investigations
5) Customer protection
Measures that reduce user harm and improve dispute outcomes.
- Account security tooling (MFA options, device controls, alerts)
- Support responsiveness and escalation pathways
- Policy clarity for reversals, fraud, and mistaken transfers
6) Governance & compliance alignment
Internal control environment and alignment with applicable obligations.
- Segregation of duties and access controls
- Risk management process maturity
- Clear jurisdictional posture and licensing claims (as stated)
Scoring approach
A CExIndex score can be expressed as:
- A composite score (e.g., 0–100) for quick comparisons
- A dimension profile (e.g., Reliability: High, Integrity: Medium, etc.) for discussion and decision-making
- A narrative assessment that documents evidence, assumptions, and limitations
Because data availability differs by exchange, CExIndex assessments should explicitly note evidence sources, measurement windows, and any unknowns.
Scope and limits
- CExIndex is a framework for evaluating exchange operations and controls — it does not measure asset quality or predict returns.
- Scores may change over time as exchanges evolve, incidents occur, or disclosure improves.
- Any index is only as strong as its evidence. A “high score” should not be treated as a guarantee.
Common use cases
- Comparing exchanges during vendor selection or platform migration
- Documenting exchange risk in policy or governance materials
- Creating a consistent internal rubric for exchange monitoring
Contact
Corrections, suggestions, or references are welcome.