The gods have met together for a drinking bout in the hall of the giant Ægir. When everybody is praising Ægir's efficient servants, Loki kills one of them, Fimafengr, and is driven out of the hall as a result. This is where the Lokasenna begins.
Loki tries to regain entry but is turned back by the servant Eldir. After he has insisted upon his rights as Óðinn's blood-brother, he is allowed to re-enter. He does not greet Bragi. When Iðunn comes to Bragi's defence, she is derised by Loki as well. From this point on all the gods and their servants are victims of Loki's derision.