Removing the potholder from the loom, or binding off, may seem perplexing until you learn the technique. Children's potholder looms are simple squares with pegs around which you wrap colorful loops. Binding off the potholder loom involves pulling the end loops together using a simplified crochet stitch. No extra yarn loops are necessary for finishing.
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Use the bent metal hook that comes with your kid's loom, or a size K crochet hook. Insert your hook through the second-to-last loop near a corner of the potholder. Catch the loop within the crook of the hook to make it easy to weave.
Lift the second-to-last loop up off of its peg and slide it over the loop on the first peg. Release the hook from the loop. Use your hook to capture the loop underneath the loop you just moved. Draw the loop on your hook up through the top loop so that now only the bottom loop remains on your crochet hook.
Slide the loop on your crochet hook over the next adjacent peg and repeat Step 2 along the entire outer edge of the potholder, which will create a line of V shaped stitches.
Pull the last loop through and tie a knot in it to prevent unraveling. Draw the last loop through the first stitch to secure it instead of tying it, if you prefer. Use the last loop to hang the potholder.