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We derive the capacity of the binary multi-way relay channel, in which multiple users exchange messages at a common rate through a relay. The capacity is achieved using a novel functional-decode-forward coding strategy. In the functional-decode-forward coding strategy, the relay decodes functions of the users' messages without needing to decode individual messages. The functions to be decoded by the relay are defined such that when the relay broadcasts the functions back to the users, every user is able to decode the messages of all other users.