+--------+     +--------+     +--------+     +--------+     +--------+
|        |     |  IOAM  |.....|  IOAM  |.....|  IOAM  |     |        |
+--------+     +--------+     +--------+     +--------+     +--------+
| L2/L3  |<===>| L2/L3  |<===>| L2/L3  |<===>| L2/L3  |<===>| L2/L3  |
+--------+     +--------+     +--------+     +--------+     +--------+
  Source      Encapsulating    Transit      Decapsulating   Destination
                   Node           Node           Node

               <------------  IOAM-Domain  ----------->
 
                    IOAM encap. with Loopback flag
Data packet  ------->============================>----------->
                                  |             |
                 IOAM looped back |             |
                    <=============+             |
                                IOAM looped back|
                    <===========================+