Careful using Loki

All of a sudden I was getting extreme distortion on my playback. I was ready to tear the system apart when it occurred to me it might have something to do with the Loki connection.  It was in the off position.  I turned the power switch on and Voila, the distortion went away.  It was set to flat, but it still affected the sound.So, keep the switch on when playing music even if you don’t use the equalizer if you don’t want an unpleasant surprise.
From the user manual: "  Note: when Loki is turned off it is technically bypassed, but the unpowered input may cause distortion in some systems. Best to turn it on and switch it to bypass the tone controls."

I leave mine on all the time.  The bypass mode is very transparent. 
Yes, I believe it says someplace that you may not get any sound if the Loki  switch is turned off.
It DOES pass signal while off albeit not clearly. Best used in a switchable tape loop. Vintage only.