When your baby is born the umbilical cord is cut and there is a stump left.

The stump should dry and fall off

by the time your baby is 5 to 15 days old. Keep the stump clean with gauze and water only. Sponge bathe the
rest of your baby, as well. Do not put your baby in a tub of water until the stump has fallen off.

Let the stump fall off naturally. Do not try to pull it off, even if it is only hanging on by a thread.

Watch the umbilical cord stump for infection. This does not occur often. But if it does, the
infection can spread quickly.

Signs of a local infection at the stump include:

 Foul-smelling, yellow drainage from the stump

 Redness, swelling, or tenderness of the skin around the stump
 Be aware of signs of a more serious infection. Contact your baby's health care provider
immediately if your baby has:
- Poor feeding
- Fever of 100.4°F (38°C) or higher
- Lethargy
- Floppy, poor muscle tone
- If the cord stump is pulled off too soon, it could start actively bleeding, meaning
every time you wipe away a drop of blood, another drop appears. If the cord stump
continues to bleed, call your baby's provider immediately.

Sometimes, instead of completely drying, the cord will form pink scar tissue called a granuloma.
The granuloma drains a light-yellowish fluid. This will most often go away in about a week. If it
does not, call your baby's provider.

If your baby's stump has not fallen off in 4 weeks (and more likely much sooner), call you baby's
provider. There may be a problem with the baby's anatomy or immune system.

Link: https://medlineplus.gov/ency/article/001926.htm