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The Fender Mustang III-V (V2) amplifiers Effects Loop can be configured in several ways.

On Mustang III-V (V2) with firmware version 2.0, the effects loop is fixed in the "pre amp" position.

As of firmware version 2.1 and later, the effects loop is placed in the "post amp" position, and the user is able to switch the "Fx Loop Position" to either "Normal" or "Looper Pedal" under the Utilities menu. 

Fender has provided an [Effects Loop Diagram" PDF"] and Three (3) reference articles in the Mustang Support area on Fender site here

The following are excerpts from those reference articles: 

USING THE EFFECTS LOOP ON THE FENDER® MUSTANG™ III-V AMPLIFIERS Edit

PROBLEM DESCRIPTION 

What options do I have when using the effects loop on my Fender® Mustang™ III-V amplifiers?

SOLUTION

The Fender Mustang III-V amps include an effects loop. On the Mustang III (V1 & V2), the effects loop is mono (one send/one return).  For the Mustang III, the audio signal is summed when using the effects send/return. When a hardware effect is used, the internal audio signal is summed. This includes any effects running in stereo. 

On the Mustang IV and V (V1 & V2), the effects loop is stereo (left & right send/left and right return). When a stereo hardware effect is used, the true stereo signal is carried though the effects loop and through the amp’s output section. If only one channel (left or right) of the effects sends is used, any internal stereo effects will be output through the effects send only on the channel that is being connected. The effects loop on the Mustang IV and V amps is not summed. The result of connecting a mono hardware effect to the stereo effects loop on the Mustang IV or V amps will be that you will lose the opposite channel’s signal content only for any stereo effects currently running internally on the amp. We recommend that stereo hardware effects be used with the Mustang IV and V amp’s effects loop whenever possible. 

It is also possible to use an appropriate “Y” adaptor cable to get signal from both left and right effects send outputs on the Mustang IV and V amps. The result here will be two channels of audio depending on how the adaptor cables are connected. But the signal path will be two channels but not in stereo. Please let us know if we can assist further.    

LOOPER PEDAL CONFIGURATION ON FENDER® MUSTANG™ III-V (V.2) AMPLIFIERS Edit

PROBLEM DESCRIPTION

How can I configure the effects loop on my Fender® Mustang™ III-V (V.2) to match the function the Fender Mustang III-V (V.1)?

SOLUTION Edit

The Fender Mustang III-V (V2) amplifiers Effects Loop can be configured in several ways. If your Mustang III-V (V2) shipped with or is currently loaded with firmware version 2.0, the effects loop is fixed in the "pre amp" position. As of firmware version 2.1 and later, the effects loop is placed in the "post amp" position, and you are now able to switch the "Fx Loop Position" to either "Normal" or Looper Pedal" under the Utilities menu on your Fender Mustang III/IV/V (V.2). 

This is desirable in particular for those who wish to use Looper pedals with the Fender Mustang III-V (V1) series amps where the effects loop is fixed in the "post amp" position. Please see the "Effects Loop Diagram" PDF via the Related Downloads section in this article.

FENDER® MUSTANG™ III, IV, V EFFECTS LOOP Edit

PROBLEM DESCRIPTION Edit

Using the Fender® Mustang™ III, IV, V Effects Loop to connect external effects devices to your amplifier.

SOLUTION Edit

The Fender Mustang IV and V amplifiers can accept stereo or mono effects devices at line level. The Fender Mustang III amplifier only accepts mono effects devices as it has a mono Effects Loop. In use with the Mustang IV and V, a mono-in, mono-out effect unit will use one send and one return, and only effect one side of the stereo image when used without appropriate adaptors. "Y" adaptor cables can be used to connect a stereo device into the Mustang III's mono effects loop. "Y" adapter cables can also be used to connect a mono effect to the Effects Loop on the Mustang IV and V amps so that both left and right channels of the Effects Loop will be connected. However, the resulting audio signal be dual monaural and not stereo. 

Connect the amp's FX SEND jack(s) to the input(s) on your external effects device and connect the amp's FX RETURN jack(s) to the output(s) on your effects device. Additionally, you can use the Effects Send as a Line Output for recording puposes or a live sound application (Mustang III-V/V1 Series). The Mustang Floor has a mono Effects Loop that is fixed in the "pre amlifier" position.