Risks and mitigants
If there is unexpected price volatility, the vault's liquidity may become Out Of Range. The Liquidity may be worse than a Full-Range Position, and will only improve if the price moves back into range.
If projects are uncertain how the vault's tokens will trade, they can:
Projects can update the parameters at any time. For example, if the volatility is lower, they can increase Fee Income or Capital Efficiency by choosing a narrow-range strategy, or by decreasing the value of Full-Range Weight.
Anyone* can Rebalance the vault, but if no one triggers rebalance, the vault's Liquidity Positions will not be updated as the price changes. The means the vault is more likely to underperform.
*Vault Manager can turn this off so that only whitelisted addresses can call rebalance.
Price manipulation occurs when attackers use large amounts of capital to swap tokens, in order to manipulate the price within a pool. If other protocols (eg lending protocols) use the pool's price as the oracle, value can be extracted from the protocol when the pool price is temporarily manipulated.