IPads have the capability to share a Wi-Fi connection with nearby devices. It is not necessary for the iPad to be in range of a Wi-Fi network. In order to share the connection, the Personal Hotspot must be turned on from the cellular settings.
When sharing a Wi-Fi connection, the user has the option to require a password before using the connection. This is an added safety feature that prevents undesired activity from occurring over the shared Wi-Fi connection. The iPad indicates the number of devices connected to the personal hotspot at any given time, and the operator of the iPad has the ability to disconnect any device at any time.