How does a grid bot make profit?

Could you please elaborate on the process of how a grid bot generates profits in the world of cryptocurrency trading? I'm particularly interested in understanding the mechanics behind its operation and how it manages to capitalize on market fluctuations. Is there a specific strategy it employs, or does it rely on a combination of factors to consistently yield positive returns? Additionally, are there any inherent risks associated with using a grid bot, and how does it mitigate them to ensure profitability?