Does offsetting a future contact on an exchange eliminste default risk.
Yes. As the exchange performs the clearing house function & hence eliminates default risk a.k.a. counterpart risk…
Futures contracts should have no default risk as your counterparty is always the clearinghouse.
(The clearinghouse ensures that it has no (or precious little) counterparty risk by requiring a margin account.)
Taking an offsetting position with another futures contract should eliminate all risk since there is no default risk. This would not be the case with a forward contract because you are exposed to counterparty risk.
Yes it reduce default risk but in Forward contract because future contract are more standarised.