Everything goes below the water surface by no more than 6" then it's liner about 4" into the water normally.
All the ponds I built I used waterproof mortar, even my Koi pond the wall is built from concrete blocks there is only a small amount in the water if I remember the only treatment I carried out was to vinegar wash all the cement work. G4 was out of my pocket range in those days but as yours is a wildlife pond I wouldn't be to bothered.
The Silicone idea was just a though, an inert bedding compound, dependent on size you would need quite a bit & the rocks would need to be clean & dry, the Silicone would act as a bedding medium rather than a glue.
The hardest part is selecting the right rock each time, they need to flow "look natural" build in terraces, if a rock doesn't fit leave it, use another it'll fit elsewhere.
If you decide to make your own rock for the waterfall after the cement is mix some peat in it & a couple of colours I suppose a cook would say fold them in if you mix to much all they do is alter the colour whereas you want subtle colour layers / streaks.
A thought if you use G4 or some sort of resin, to be honest I suppose it's the best, make a distinct lime so it looks like a "Tide mark" above the water.
When you fire up the water fall don'y get upset if the fall is not right have a collection of small rocks no bigger than 6" you can have hours of fun, days even! just placing them the lips of the drops to see how they alter the flow.
Many times I left families playing & still at it when i returned.
Now having hijacked your thread one last thing, not happy with the way the water falls?
Collect up all your little rocks & start again from the top!!
OK 2 last things then
😵
A piece of rope or a twig can also alter your water fall, that is unless it's "Mosi-oa-Tunya"
😉 I'll leave you to work that one out!!
