No longer will our kind remain trapped on this primitive planet! No, we will spread out, and rip this Universe apart! Planet by planet, star by star, until nothing but dust remains!
The Loki Master, A4O
The Loki did not have legs, but instead, had an ethereal "tail" where the lower portion of their body would be. Much like phantoms, Loki could travel by means of levitation. The Loki did have arms and three-fingered hands for grasping objects. The Loki had a large maw full of sharp teeth; however, it was unknown if they were used for eating. All Loki were black with highlights of dark blue and purple radiating from beneath their skin.
The Loki evolved on Toranux as parasites of sorts; they could possess small critters. Larger creatures could not be possessed by natural means, thus requiring technological means to force their bodies into larger creatures. The Loki cannot survive long outside a host. Their survival without the need of a host on Toranux was most likely due to the fact that hibernating Loki could be found in Toranux shards. It is possible that Toranux shards can serve as an inorganic conduit in which the Loki could survive.
Little is known about early Loki history. At some point in history eons before the beginning of the series, and even before the Great War, a Cragmite warrior named Bagogg crash-landed on the Loki homeworld of Toranux. He managed to survive several years on Toranux until he escaped back to Reepor, despite the effort of the hostile, he soon returned to Toranux with a Class Three Planet Smasher that destroyed Toranux. The story of Bagogg and the Loki became a Cragmite's children story.
Despite the obliteration of Toranux, a few Loki, such as the Loki Master managed to survive, hibernating in the native fragment shards of Toranux. One of these shards crash-landed on the backwater world of Magnus in Terrawatt Forest, creating a massive crater. The Loki that survived the impact possessed local critters as vessels.
The Loki discovered Magnus was the homeworld of the friendly Tharpods. From heavily implied statements by Dr. Croid, the Loki used the critters of Magnus to secretly influence the Tharpods, possibly explaining the relationship between the critters and Tharpods. It's likely the Loki influenced Tharpod development to better advance their own agenda.
The Loki Master, controlling Mr. Dinkles, used his access to tech created by Nevo and Croid allowed him to steal Protomorphic Energy Extractor for use in allowing the Loki to possess larger creatures. Nevo discovered this and attempted to stop him, but the Loki Master threatened to kill him if Nevo didn't work for him. Dr. Croid thinking Nevo stole Mr. Dinkles, built Ephemeris to track Mr. Dinkles. The Loki Master had Nevo modify Ephemeris from a small drone to a moon sized drone capable of capturing massive beasts. Ephemeris raided planets from the Polaris Galaxy to as far as the Bogon Galaxy. He also used Ephemeris to collect Toranux shards still in space, thus adding the number of Loki ready for massive galactic invasion.
Realizing that he needed even more forces to capture more creatures, the Loki Master ordered Nevo to build an army of loyal robots known as Collectors under the command of Commander Spog to capture even more creatures. Dr. Croid tried to warn the leaders of Uzo City what Nevo was up to, but the Loki Master was prepared, and had Ephemeris and the Collectors under the command of Commander Spog launch a massive assault on Uzo City. By the time Dr. Croid had arrived, Uzo City lay in waste. These Collectors attacked the Tharpods, forcing them to evacuate numerous sections of their homeworld as Collectors built creature pens.
During the Ephemeris raid on Igliak for a rampaging Z'Grute, Ephemeris accidentally captured Ratchet, Clank, President Qwark and Doctor Nefarious. Freed by Susie, they went about causing havoc on Magnus, killing numerous alien predators and attacking Collectors, including defeating Commander Spog. By the time they reached the remnants of Uzo City and entered Ephemeris, they saw the true mastermind, a Mr. Dinkles being possessed by the Loki Master. The four heroes had assumed Nevo had been the culprit, but as stated above, he was merely a slave, or "pet" to the Loki Master. He states he plans to have the Loki possess super predators and cause havoc across the galaxy, using the Protomorphic Energy Extractor to possess larger creatures. A fight ensues with the Loki Master, who uses Mr. Dinkles to pilot a Hover Throne armed with heavy weapons and shields, and supported by numerous Collectors. During the battle, it is revealed that he is disappointed that the Cragmites have vanished since he planned to launch an invasion on Reepor to the avenge the loss of Toranux. However, he states that he will have to find a new planet to invade, similar to Igliak. Despite his Hover Throne's weaponry and shields, it is destroyed, causing the Loki Master to become enraged. Steward states the Protomorphic Energy Extractor is charged and ready to go, and the Loki Master activates the device, taking control of a Rykan V Grivelnox. With the four heroes, Nevo and Croid working together, they manage to turn the gadget on the Loki Master, pulling it out of the beast. The Loki Master, in both anger and desperation charges at Qwark, but is quickly defeated by a punch from Dr. Nefarious. The Loki Master falls to the ground and dies in a puff of smoke.
With the defeat of the Loki Master, Dr. Nevo and Dr. Croid destroyed the remnents of Toranux, thereby bringing the Loki into extinction. It's possible that some Toranux Shards survived with Loki in them, although it is truly unknown.
Except for the Master, only one Loki appears in the game as a test subject of Dr. Croid, controlling a Cursed Snarflap. Although, other Loki could be seen inside the remnants of Toranaux.
Despite their claims of superiority, it seems implied that the Loki were not even a star-faring race, since they had to use the Tharpod-built Ephemeris drone to collect the remains of their own homeworld. The Loki Master also admits that most of the Collectors were built by Nevo. The Loki have created a few things of interest, and these are creations made solely by the Loki Master.