Hello, and thank you for using Petco Pet Education Center, formerly Petcoach. It’s difficult to tell for sure what’s going on without examining Timmy myself, but from the appearance of that discharge in the photo I’m concerned Timmy may have an infection in that nail bed. This could happen after trauma, or if he punctured his foot on something sharp. I recommend having Timmy seen by a vet, as he may need a course of antibiotics. It’s also possible he has a mass growing on that toe, but that would be considered less likely at his young age. I hope this helps!