Your calculation seems to be wrong. While we say a dice site having 1% house edge, does it mean that player has 99% chance to win? No. It means the players has 49% chance to win. Similarly, here, if they make it 8x return, that would mean, they are running on 0% house edge. Your demand of 15x return is absurd, as it would mean -ve house edge, i.e. house is certain to lose in the long run. 4x return is 25% house edge, with the chance of 400% return.
My calculations are definitely correct.
What is House Edge?
The difference between expected value and 100%.
For example:
I say that you can flip a coin. If it is heads, you gain 1.5x profit, if it is tails you lose it all.
Expected value = 50%*1.5x + 50%*0 = 75%
So the house edge is 100%-75% = 25%
Why does this game have a house edge of 75%?
One in 16 games gives you 4x the money.
So Expected Value = 1/16*4 = 4/16=25%
Hence, house edge = 100-25=75%
You did not consider the fact that, unlike dice sites, you can bet on multiple options at a time here and thereby significantly raise your chance of win.
That changes nothing. Let's say you bet 1 BTC spread across 5 different options. (0.2 BTC on each option)
The expected value (average winnings) is 5/16 chance to win * 0.8 amount won = 0.25 BTC
What if you had normally bet just 1 BTC on 1 single option?
1/16 chance to win * 4 BTC amount won = 0.25 BTC expected value
The expected value in both cases is 25% (0.25 BTC 1 BTC) and hence the house edge is 100% - 25% = 75%