Loki knew that his days in Asgard had come to an end. He knew how soon anguish can give way to anger and was sure the gods would avenge Balder’s death and detention in Hel.
He ran away. He made for a deserted part of Midgard, a remote place in the mountains at the head of a steep valley that fell into the sea. He found a hollow near Franang’s Falls and, using the rock and rubble lying all around, built a low house that no man was likely to see until he had stumbled into it. It had four doors so that Loki could keep watch in every direction.