That is the assumption imo. Most hosts will kill off characters or Woz at the beginning story to reveal some of the alignments in the game. I'm going with the assumption that there are 4 alignments Whiterun, Blue, Red, and Orange. Also, don't count out possibly more. Unlikley, but Dome has done hidden things in the past and I have as well in the game I ran. Given 16 players, 5 plus would be extremely unlikley though