I'm going to assume its 5 inches long, 5 inches wide and 12 inches tall, is that correct? (thats 300 cubic inches,
BTW. only 25 inches square of surface area)
That seems a little small. Even if you made that 6 inches wide, by 5 by 12 tall it's still pretty small. You want a little more surface area with the sand to make it more efficient.
Caulerpa does need to be submerged,
AFAIK. It will also need light, obviously. So be sure to plan for placing some lighting over your fuge.