What Is the Main Risk an LP Faces When the Price Moves outside Their Chosen Range in a Concentrated Liquidity Pool?

The main risk is 100% impermanent loss relative to the capital deployed. Once the price moves outside the range, the LP's position fully converts into the less valuable of the two assets.

The LP is then entirely exposed to the directional price movement of that single asset, and they earn no trading fees until the price moves back into their specified range.