The private keys to your blockchain assets are generated and encrypted locally and stored on your computer ONLY. These keys never leave your computer, they are never stored on the cloud, and they remain 100% for your eyes only, 100% in your control.
The Exodus backup system only backs up encrypted metadata (transaction data) - no keys are ever stored on any 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.
If your computer breaks, you can use the Exodus backup system in conjunction with a secure link in your email to restore your wallet. This link is protected by both your passphrase and an Exodus 'key'.
This video explains the Exodus backup process: