In fanfiction, this could happen if we consider the idea of adopted sonship. Loki, being the trickster he is, could have saved Peter Parker's life at a young age when he was orphaned. Over time, Peter grows up under Loki's care and influence, and they form a father - son bond, even though they have no biological relation. This would open up a whole new dynamic for their characters, with Peter having to deal with Loki's complex personality and Loki having to adjust to being a father figure.
Well, in fanfiction, anything can be possible. Maybe it could be some sort of multiverse shenanigans. For example, a spell gone wrong in the multiverse could have intertwined the fates of Peter Parker and Loki in such a way that Peter ends up being his son. It could also be a result of some powerful being's meddling with reality for their own purposes.
It might be possible through a reality - warp. Perhaps a powerful artifact was misused, and it created a new timeline where Loki had a relationship with someone related to Peter Parker's family line, and thus Peter became his son. Or maybe Loki himself, with his mischievous nature, played a long - con trick on the universe that ended up with him having a son in Peter Parker.
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