By default, EBGP sessions are built with the expectation that peers are directly connected at Layer 3, and Junos enforces this by sending EBGP packets with a TTL of 1. When loopback addresses are used as the session endpoints instead of the directly connected physical interface addresses, the resulting IP packets must traverse at least one additional router hop between the two loopbacks, and a TTL of 1 will expire in transit before reaching the remote loopback, causing the TCP handshake — and therefore the BGP session — to fail even though a valid route to the peer's loopback exists. The multihop statement (configured as an EBGP multihop parameter with an accompanying TTL value, most commonly set to 2 for a single intermediate hop) instructs Junos to increase the TTL used for that peer's BGP packets so they survive the extra hop count between loopbacks. This is a mandatory addition any time an EBGP session is deliberately built against non-directly-connected addresses, whereas IBGP sessions, by contrast, do not have this default restriction because IBGP already assumes peers may be multiple hops apart within the same AS. Multipath affects load-balancing across equal-cost paths, damping suppresses flapping routes, and passive controls whether a router waits for the remote peer to initiate the TCP connection — none of these resolve the TTL expiration problem inherent to loopback-based EBGP peering. Reference topics: Junos Enterprise Routing – BGP, Configuring EBGP Multihop Sessions.