You are reading it right. Silicone should not be used underwater. That said, the RTV100 series silicone is the most often used by pro builders of aquariums. The reason it can be "gotten away with" is because the silicone that actually holds the tank together, does not come in contact with the water. The inner seal prevents the contact, and insures the longevity of the structural seams. Anyway, that is the right stuff...