Loki was reading in the palace's library when he felt a burning sensation from the chain around his neck. Loki raced to the Bifrost as soon as it began, because the other half of the chain had been activated from a small wizarding town in Midgard. The activation of the necklace meant that the owner of the necklace was in grave danger. The charm on the chain only activated when the owner of the chain was breathing their last breath.
At last, Loki had reached the Bifrost. "My prince, the wizard family that you had me watch over, is in grave danger," Heimdall stated solemnly.
"Aye, that is why I have rushed here. Please take me to them, and also please inform Thor of my whereabouts and that I shall return shortly," Loki said worriedly to Heimdall.
"As you wish, my prince." Heimdall twisted his sword to activate the Bifrost, and Loki was whisked away to the little town in Southwestern England—Godric Hollow.
In order to avoid the mortals' attention, Loki was transported to the outskirts of town by the Bifrost. Loki used his magic to teleport himself to the 14th-century cottage, emerging outside the door with green smoke representing his seiðr.
When the dark-haired mage saw that the door was unlocked, he dashed inside, only to cross paths with his dear friend, James Potter, who had sacrificed his life to protect his family.
Loki knelt and closed James' eyes. "May the Norns transport your soul to Valhalla, where the brave may live forever." Loki said a solemn prayer.
The brunette, climbed the stairs to the nursery, which housed his close friend Lily and her son Harry. "My dear Lily, what has happened?" Loki inquired, but it wasn't a question because he knew who was to blame for the devastation.
Loki knelt near Lily's body and felt her pinky touch his hand. She attempted to speak. "L-Loki," she stutters as she takes shallow breaths.
"Shhh, don't say anything, don't say anything. I—I will heal you, and you will be able to live and watch your son grow up," Loki sobbed as tears streamed down his cheeks.
"No," she said, shaking her head. "V-Vold-mort cast the killing curse on Har-ry, and it rebounded on me, so healing me is out of the question. Please bear with me, my old friend. I don't have much time." A tear fell from her eye as she gazed into Loki's red eyes for the last time. "Take Harry with you; he won't be safe here." She tapped two envelopes as she said this. "O-one for you and one for Harry; please ensure Harry has a good and happy life."
Loki rested his head on her brow, looked her in the eyes, and said, "I will do everything in my power to ensure Harry has a happy life and never doubt that he is loved for this, I swear as prince of Asgard and rightful heir to the Jotunheimen throne."
Lily smiled. "Thank you, frosty," Loki snorted, referring to the nickname she gave him when they first met.
Lily's eyes closed as she said her final goodbye, and she smiled as she took her final breath. She welcomed death as if it were an old friend, knowing that Harry would have the best life possible with Loki and Thor after she was gone. Loki was crying as he said the same prayer he had said to James, so that they could continue their love in the halls of Valhalla.
Loki tucked the letters into his pocket for safekeeping and wiped away his tears, knowing he had someone he needed to meet.
"Hello, Harry, don't cry." Loki cooed as he reached into the crib and wrapped the crying Harry in a blanket with snitches flying around on it and his name stitched in the centre.
"I am going to take you home with me and take you to the lady Eir so she can check you over to make sure you're alright!" "How does that sound?" Loki crooned to the adorable baby with the lightning bolt scar on his forehead, which he would have to investigate later.
Harry was giggling and batting at Loki's horns and long hair. Loki was impressed that the one-year-old babe was unafraid of his blue skin and horns.
Loki allowed his seiðr to envelop both him and Harry, transporting them to the outskirts of town where the Bifrost would whisk them away to Asgard, Harry's new home.
If Loki had been a few seconds late in teleporting away, he would have encountered Severus Snape bursting into the nursery, falling near Lily, and clutching her dead body while sobbing about losing his love; in his grief, he didn't realise there was no baby wailing in the cottage.