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First, clicking on the grid in a loop level opens the Loop Context menu (loop levels can be recognized as the rows with white background and buttons, as opposed to the light grey of channels' rows; they are located above the channels, but below the time scale). This can be used, for example, to add, delete, change, or view information about loops, as well as to add or delete loop levels.
Second, clicking on a loop level's button will bring up a menu that contains a subset of the items of the Loop Context menu. Specifically, it includes those items that deal with the loop level, as opposed to loops on that loop level.
If your sequence does not contain any loop levels, but you want to add loops to it, first use "Turn On Loops" from the Edit menu. This will insert a loop level into the sequence. Note that loops can only be used in animation sequences, not in musical sequences.
The Loop context menu