Am i useing the term catch-22 correctly?

Yes you`re using it correctly. It comes from the novel "Catch 22" where the main character is a bomber pilot in WWII. It reffered to two conflicting Army regulations that said you could only be grounded for being insane if you requested an exam yourself.......but requesting an exam meant that you were sane enough to question your sanity, so you were fit for combat.