User location can be obtained using GPS and as you said radius is dynamic and is dependent on time, so radius can be figured out from time. Now you have user location and radius. Now, you can calculate distance of user location from center of circular geofence and then compare it with radius.
Distance calculation between two points over map can be done using API like "distanceTo" available in developer website. http://developer.android.com/reference/android/location/Location.html
If radius is bigger than distance, user is inside the geofence and if radius is smaller than calculated distance, then user is outside of dynamic geofence.
For more info regarding implementation- visit http://developer.android.com/training/location/geofencing.html