Loki says that Odin does a poor job in handing out honor in war to men, and that he's often given victory to the faint-hearted.
Odin responds that even if this is true, Loki (in a story otherwise unattested) once spent eight winters beneath the earth as a woman milking cows, and during this time bore children. Loki counters that Odin once practiced seiðr (a type of sorcery) on the island of Samsey (now Samsø, Denmark), and, appearing as a wizard, traveled among mankind, which Loki condemns as perverse.
In both the Poetic Edda and the Prose Edda, the goddess Skaði is responsible for placing a serpent above him while he is bound.
The serpent drips venom from above him that Sigyn collects into a bowl; however, she must empty the bowl when it is full, and the venom that drips in the meantime causes Loki to writhe in pain, thereby causing earthquakes.
Loki comes out of the woods, and meets Eldir outside of the hall.
Loki greets Eldir (and the poem itself begins) with a demand that Eldir tell him what the gods are discussing over their ale inside the hall.
Loki's positive relations with the gods end with his role in engineering the death of the god Baldr and Loki is eventually bound by Váli with the entrails of one of his sons.
The goddess Gefjun asks why the two gods must fight, saying that Loki knows that he is joking, and that "all living things love him." Loki responds to Gefjun by stating that Gefjun's heart was once seduced by a "white boy" who gave her a jewel, and who Gefjun laid her thigh over.
Odin says that Loki must be insane to make Gefjun his enemy, as her wisdom about the fates of men may equal Odin's own.
With the onset of Ragnarök, Loki is foretold to slip free from his bonds and to fight against the gods among the forces of the jötnar, at which time he will encounter the god Heimdallr and the two will slay each other.
Loki is referred to in the Poetic Edda, compiled in the 13th century from earlier traditional sources; the Prose Edda and Heimskringla, written in the 13th century by Snorri Sturluson; the Norwegian Rune Poems, in the poetry of skalds, and in Scandinavian folklore.
Odin then asks his silent son Víðarr to sit up, so that Loki (here referred to as the "wolf's father") may sit at the feast, and so that he may not speak words of blame to the gods in Ægir's hall. Prior to drinking, Loki declaims a toast to the gods, with a specific exception for Bragi.