They were taken out of his hands, one by one. First was his son Fenrir the wolf. He screamed and he wept as the guards held him back with their blades to his neck. Frigga, the dear kind mother tried to soothe Loki's tears as she held back her own. Loki did not care what those who had gathered around in the courtyard would think of his actions, what they would think of him on his knees weeping like a mother who's son was taken from her arms and lead to war by a roofless king. Loki cried in Frigga's arms as she watched Fenrir lead into the distance, they were both helpless.
They all knew of Fenrir's fate, except the wolf himself. They tried to keep their plans well hidden from Loki but he heard it all. He heard Odin, Tyr, Thor and Bladr discuss the imprisoment of his son. Loki tried to warn Fenrir, he wanted to tell him to run, to run away as fast and as far out of Odin's reach. But it was all too late. The wolf was bound with unbreakable chains and a sword was placed into his mouth preventing him from calling to his father.
As the wolf had grown in the palace walls the gods grew afraid of the wolf. The wolf was indeed unique in his size and fierceness and some what resembled his father in the chaos that he created. The gods feared that soon he would murder and they would not be able to slay the beast. The gods were too cautious, the wolf meant no harm, he was only a child and a mischievous one. They may as well have bound all their warriors whom were no less harmless than the wolf. They were the ones who deserved to be bound, shameless filthy beasts!
Soon after, Loki's second son was born. A serpent he was. He was named Jörmungandr, and he grew wide and long. Loki loved him dearly and did everything in his power for the serpent to grow gentle and kind. Despite doing so the Asgardians saw him as a threat. Soon the serpent grew too wide for the corridors to slither through. And long he grew, with ease he could incircle the palace twice over with his scaly coils.
Odin casted him away, he threw Jörmungandr into the Midgardian seas where he coiled around the earth, biting down onto his own tail. And so he became known as the Midgardian serpent, there he will lay until Ragnarök comes.
Loki cried and called for his second son as he did for his first. He pleaded Odin not to cast away Jörmungandr, to show his mercy and kindness. But Odin turned away with the words that he already showed enough mercy towards the serpent. His mercy was in that he merely casted away and bound the serpent but did not kill him.
Then Loki's daughter was born. Half dead she was. Life nourished on one side and dead on the other. Hel was no different from any other child, except for the grim mood that possessed her, but who could blame her. She received cold glares for her half dead vessel. She was an outcast, just like her father. Hel grew mirroring her father at heart.
Just like Loki's first two children she was casted away. She was brought to the underworld, it was a world where the dead flourished. Hel was seated upon the throne of bones and a crown was placed upon her head. And so the realm of the dead came to be known as Helheim where the half dead queen ruled. She laughed at the gods, they thought that she would be bound, scared and broken. How foolish they were, they gave her power and more reasons to be feard of.
The day that Hel was dragged away from her fathers arms, leaving him on the brink of tears she whispered to him, "Do not weep for me father, we will see each other again. One day you will lead an army against those who set me and my brothers apart from you." With those words she let herself be lead away. Loki did not weep, just as his daughter asked him to and waited for the day that they would meet again.
It was a little known fact at that time in Asgard that Fenrir was not Loki's first son. For was his first son was not casted away but left to serve Odin as his royal steed. Loki's first child was indeed a horse and a unique one too. The stalion was named Sleipnir, he was as black as the night and possessed eight legs. He was faster than the wind and could gallop between the nine realms without the need of the biofrost.
When Loki brought Sleipnir to his father as a gift he drank meed until his throat was raw and scorched. Although his son was a beast he cared deeply for him, but there was shame with guilt. Loki knew that if anyone found out the truth behind the magnificent steed there will be humiliation to his name, and so the bitter truth was hidden away.