  A new accretion picture based on a small disk surrounding a black hole is
developed for the wind-fed source Cyg X-1. The hard and soft spectral states of
Cyg X-1 are interpreted in terms of co-spatial two component flows for the
innermost region of an accretion disk. The state transitions result from the
outward expansion and inward recession of this inner disk for the hard to soft
and soft to hard transition respectively. The theoretical framework for state
transitions in black hole X-ray binaries with high mass companions involving a
change in the inner disk size, thus, differs from systems with low mass
companions involving the change in the outer disk size. This fundamental
difference stems from the fact that matter captured and supplied to the black
hole in wind-fed systems has low specific angular momentum and is hot
essentially heated in the bow and spiral shocks, whereas it has high specific
angular momentum and is cool in Roche lobe overflow systems. The existence of a
weak cool disk around the ISCO region in the hard state allows for the presence
of a relativistically broadened Fe K line. The small disk fed by gas
condensation forms without an extensive outer disk, precluding thermal
instabilities and large outbursts, resulting in the lack of large amplitude
outbursts and hysteresis effects in the light curve of high mass black hole
X-ray binaries. Their relatively persistent X-ray emission is attributed to
their wind-fed nature.
